One of the largest differences between a centralized and decentralized organization is the division of power. In a decentralized organization, power is given to managers of individual departments or business units. Responsibility is one of the three characteristics of a responsibility center. Which of the following best represents the delegation of responsibility within a decentralized organization?
A) Bobby is a sales associate who was just asked to assume responsibility for checking out guests but has not received any instruction regarding what needs to be done.
B) Sharon, the manager of the research department, has tasked a research assistant with doing an equipment inventory count each month and takes timely updates to be sure task is done.
C) The company CEO decides that they will continue to oversee the production department but places all responsibility for sales outcome on the department manager.
D) The women's clothing manager of a retail store has assumed responsibility for overseeing the men's department, delegated folding to a sales associate, but has not requested an update.

Question

Quizplus · Accepted Answer

This question requires familiarity with responsibility, one of the three characteristics of a responsibility center. Choice B is the only one of the four choices that accurately depicts the implementation of responsibility since the manager has not only delegated a task but also taken steps to ensure that task is completed. The other three choices represent a lack of responsibility where higher-level executives and managers have not correctly or fully implemented responsibility.

One of the Largest Differences Between a Centralized and Decentralized