A firm's vertical differentiation determines where in its organization structure managers have decided to concentrate decision-making authority.

Question

Quizplus · Accepted Answer

Vertical differentiation refers to the way in which a firm designs its organizational structure with different levels of authority and decision-making responsibility. It determines which level of management has the most power and control over certain tasks and projects within the company. Therefore, a firm's vertical differentiation does indeed determine where managers have concentrated decision-making authority within the structure.

A Firm's Vertical Differentiation Determines Where in Its Organization Structure