International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

Question

Quizplus · Accepted Answer

Centralized authority gives top management more direct control over all of the firm's operations. This enables management to establish standards throughout the organization. However, centralized authority can make the firm less responsive to the needs of customers, since it limits the decision-making authority of lower-level managers and employees who interact directly with customers and are most familiar with local conditions.

International Inns and Conference Centers (IICC), a National Chain of Professional