Which of the following determines the degree of decentralization a firm might use?
A)The degree to which lower level management is empowered to make decisions.
B)The chain of command used to follow the flow of authority from the top of the hierarchy to the lowest levels.
C)The geographical area served by the firm's operations.
D)The degree of product standardization desired by the marketplace.

Question

Quizplus · Accepted Answer

The degree of decentralization in a firm is largely determined by the extent to which lower level management is empowered to make decisions. If lower level managers have a high degree of decision-making power and autonomy, the firm is more decentralized. If decision-making power is concentrated at the top of the hierarchy, the firm is more centralized. The other factors listed (B, C, and D) may also have some influence on the degree of decentralization, but they are not the primary determinants.

Which of the Following Determines the Degree of Decentralization a Firm