Decentralization is most effective when an organization:
A) operates in a complex environment.
B) operates in a simple environment.
C) operates in a stable environment.
D) operates in a rich environment.

Question

Quizplus · Accepted Answer

Decentralization is most effective when an organization operates in a complex environment where decision-making needs to be fast and flexible. In such an environment, top-down decision making may lead to delays and inefficiencies. Decentralization allows for more localized decision making, which can be highly beneficial in complex environments. Operating in a simple or stable environment may not require such a high degree of decentralization.

Decentralization Is Most Effective When an Organization