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 absence of delegation of responsibility within a decentralized organization?
A) Laura, the night clerk at a hotel, has been covering all of the phones as instructed since the manager believes Laura is ready to learn some additional skills.
B) The company CEO decides that they will continue to oversee the production department but places all responsibility for sales outcomes on the department manager.
C) The company CEO implements a new policy where managers will be responsible for all departmental budget information for areas they oversee.
D) The men's clothing manager of a retail store has delegated cash register duties to a new sales associate and has followed up to ensure the task is being completed.

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 absence of delegation of responsibility since the manager has not only delegated a task to Jeremy that he is not qualified to handle but also due to the reason this task was delegated. The other three choices represent a lack of responsibility where higher-level executives and managers have correctly and/or fully implemented responsibility.

One of the Largest Differences Between a Centralized and Decentralized