An optimal level of centralization in an organization:

Question

Quizplus · Accepted Answer

Optimal level of centralization in an organization leads to vertically balanced decision making at various levels in the hierarchy. This means that important decisions can be made by top management while routine and everyday matters can be handled by lower-level managers and frontline workers. This ensures that the organization runs smoothly and is responsive to changes both inside and outside the organization. Curtailing time for top management to develop overarching plans and strategies can lead to poor decision making, while an increase in employee turnover may result in a loss of talented and experienced employees. Therefore, options A, B, and D are not the best choices.

An Optimal Level of Centralization in an Organization