Which of the following determines the level of decentralization in a company?
A)The diversity of the company's products
B)The number of levels of employees and management in the company
C)The extent of decision-making authority given to the subunit managers
D)The globalization of the company's sales

Question

Quizplus · Accepted Answer

The extent of decision-making authority given to the subunit managers determines the level of decentralization in a company. Decentralization means the delegation of decision-making authority to lower levels of the organization, and this can be measured by how much power and autonomy is given to subunit managers. The diversity of products, number of employees and management levels, and globalization of sales may have some impact on the level of decentralization, but these factors are not the primary determinants.

Which of the Following Determines the Level of Decentralization in a Company