Which of these statements about decentralization is FALSE?
A)Large organizations that remain centralized tend to become less responsive to the external environment.
B)Organizations operating in diverse environments are more effective when they centralize decision making.
C)Organizations decentralize as they grow larger.
D)Large organizations should worry about having too much decentralization.
E)Different degrees of decentralization can occur simultaneously in different parts of the organization.

Question

Quizplus · Accepted Answer

This statement is false because organizations operating in diverse environments are more effective when they decentralize decision making, not centralize it. Decentralization allows for quicker and more responsive decision making at the local level, which is particularly important in diverse environments where unique challenges may arise.

Which of These Statements About Decentralization Is FALSE