The concentrating of control and strategic decision making at headquarters is referred to as:
A)Centralization
B)Decentralization
C)Coordinated centralization
D)Coordinated decentralization
E)Dictatorship

Question

Quizplus · Accepted Answer

Centralization refers to the process of concentrating the decision-making authority at the headquarter level. In a centralized organizational structure, the power lies with the top-level management, and they make all the strategic decisions for the entire organization. This approach allows better coordination and control over operations, reduces duplication of effort, and facilitates effective communication. However, it may result in slow decision-making and lack of autonomy and initiative among the lower-level employees.

The Concentrating of Control and Strategic Decision Making at Headquarters