Centralization is most effective when an organization:
A) has complex environmental forces.
B) operates in a poor environment.
C) operates in a stable environment.
D) operates in a dynamic environment.

Question

Quizplus · Accepted Answer

Centralization is most effective when an organization operates in a stable environment. In a stable environment, there is less need for immediate decision-making and the organization can afford to take a more methodical and deliberate approach to decision-making. Centralization can help ensure that decisions are consistent and aligned with organizational goals and strategies. In contrast, in a dynamic environment, where the pace of change is rapid, a more decentralized approach may be more effective as it allows for quicker decision-making and adaptation to changing conditions.

Centralization Is Most Effective When an Organization