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 degree of product standardization desired by the marketplace.
C)The chain of command used to follow the flow of authority from the top of the hierarchy to the lowest levels.
D)The geographical area served by the firm's operations.

Question

Quizplus · Accepted Answer

The degree of decentralization in a firm is determined by the extent to which lower-level managers are given the power to make decisions. This means that the closer decision-making power is to the front-line employees, the more decentralized the organization is, and the more empowered these employees are. This degree of decentralization can vary depending on the nature of the industry and the size of the company.

Which of the Following Determines the Degree of Decentralization a Firm