When the organizational environment lacks stability, organizations are more likely to decentralize authority and empower employees to make important operating decisions.

Question

Quizplus · Accepted Answer

When the organizational environment lacks stability, decentralizing authority and empowering employees can help organizations respond faster to changing conditions, allowing them to adapt and survive. This is in contrast to more rigid, centralized structures that may struggle to keep up with dynamic environments. Therefore, the statement is true.

When the Organizational Environment Lacks Stability, Organizations Are More Likely