Decentralization and centralization decisions are absolute for the entire business, it doesn't make sense to centralize some decisions and decentralize others, depending on the type of decision and the firm's strategy because it causes confusion among business units.

Question

Quizplus · Accepted Answer

Decentralization and centralization are not absolute and can coexist within the same organization. Businesses often centralize strategic decisions at the higher levels while decentralizing operational decisions to lower levels to leverage local knowledge and increase responsiveness, without necessarily causing confusion.

Decentralization and Centralization Decisions Are Absolute for the Entire Business