Caleb is a manager at a small diner in a tourist town. There are many competing restaurants in the area, so the restaurant owners depend on Caleb and his employees to pay attention to what customers order most often to determine what the daily and weekly specials should be. Caleb has the authority to make changes to the menu and offer promotions to attract more customers. What type of organization does Caleb manage?
A) overcentralized
B) centralized
C) decentralized
D) hierarchical
E) unorganized

Question

Quizplus · Accepted Answer

Caleb manages a decentralized organization, in which decision-making authority is delegated as far down the chain of command as possible. Businesses that face intense competition often decentralize to improve responsiveness and enhance creativity. Lower-level managers who interact with the external environment often develop a good understanding of it and thus are able to react quickly to changes.

Caleb Is a Manager at a Small Diner in a Tourist