Decentralization is usually desirable in a company under which of the following conditions?
A) The organization has fewer than 30 employees.
B) The company is geographically concentrated.
C) The company is operating in a pure competition.
D) The company is operating in a dynamic environment.

Question

Quizplus · Accepted Answer

Decentralization is usually desirable in a company operating in a dynamic environment where there is a need for quick decision-making and flexibility. In such an environment, centralization can slow down decision-making and hinder the organization's ability to respond quickly to changes in the market. In contrast, decentralization empowers lower-level managers to make timely decisions, which can improve the organization's overall agility.

Decentralization Is Usually Desirable in a Company Under Which of the Following