Assume that a company operates in a turbulent, difficult-to-predict environment. Because of that, the company has set up business units to deal with the differing parts of the environment and has hired/trained people to manage those business units. Under these circumstances, which type of overall authority pattern would work well?
A) No authority should be delegated to the managers of the business units.
B) Decentralize authority to the unit managers.
C) Centralize most authority to the CEO of the overall company.
D) Automate the decision processes of the company.
E) Use a geographical divisional structure.

Question

Quizplus · Accepted Answer

Decentralizing authority to unit managers allows for quicker, more adaptive responses to the unpredictable changes in different parts of the environment, leveraging the specialized knowledge and skills of those managers.

Assume That a Company Operates in a Turbulent, Difficult-To-Predict Environment