Decentralization is more successful in organizations when ________.
A) multiple segments buy from the same outside suppliers
B) multiple segments sell to the same customers
C) there are frequent purchases and sales made between segments of the organization
D) an organization's segments are relatively independent of each other

Question

Quizplus · Accepted Answer

Decentralization is more successful when an organization's segments are relatively independent of each other. This allows for more autonomy and decision-making power at the segment level, which can lead to greater innovation and efficiency. If there are frequent purchases and sales made between segments, it can create conflicts and coordination problems, which can make decentralization less effective. Similarly, if multiple segments buy from the same outside suppliers or sell to the same customers, it can limit the ability of each segment to make independent decisions and pursue its own goals.

Decentralization Is More Successful in Organizations When ________