Which of the following statements is true of decentralization?
A) A decentralized structure does not empower employees to handle customer complaints directly.
B) A decentralized structure forces top management to lose some control over the organization.
C) Decentralization slows responsiveness to local needs for decision making.
D) A decentralized structure only delegate recurring and structured decisions to lower levels.

Question

Quizplus · Accepted Answer

Decentralization involves the transfer of decision-making authority from top management to lower-level employees or departments. This means that a decentralized structure allows employees to handle customer complaints directly, making the organization more responsive to local needs. However, it also means that top management loses some control over the organization, which could lead to potential issues if lower-level employees make poor decisions. Additionally, decentralization allows not only for recurring and structured decisions to be delegated but also for non-routine and innovative decisions to be made at lower levels. Therefore, option B is the only statement that correctly reflects the impact of decentralization on organizational control.

Which of the Following Statements Is True of Decentralization