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An organization in which decision-making authority is spread throughout the organization is Blank______.Multiple choice question.decentralizedcentralized

Question

An organization in which decision-making authority is spread throughout the organization is ______.

Multiple choice question.

  • decentralized
  • centralized
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Solution

The correct answer is decentralized.

Explanation:

In organizational structures, the terms "decentralized" and "centralized" refer to how decision-making authority is distributed. In a decentralized organization, decision-making is spread across various levels and departments. This allows for more autonomy at local levels, empowering employees to make decisions that are relevant to their specific roles or regions. It often leads to increased responsiveness to local conditions and can foster innovation, as different teams or units can experiment and implement their strategies without needing to funnel everything through a central authority.

Conversely, a centralized organization concentrates decision-making authority at the top levels, where senior management dictates policies and decisions. While this can create uniformity and alignment in decision-making, it may slow down response times to local issues and stifle creativity, as lower-level employees have less influence over the decisions that affect their work.

In summary, the choice of "decentralized" reflects an organizational approach that values widespread participation and leverages the unique insights of various teams.

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