At Auternli, a cosmetics manufacturing company, all major decisions, such as decisions related to production, marketing, and finances, are made only by the top management. The middle and lower level managers are responsible for implementing these strategies without modifying any of the procedures. In the context of organizational authority, which of the following is best illustrated in this scenario?

Question

Quizplus · Accepted Answer

The scenario illustrates centralization of authority, where all major decisions are made by the top management and the middle and lower level managers only implement these decisions without any modification. This means that decision-making power is concentrated at the top level, which is typical of a highly centralized organization. The other options are not as applicable in this scenario - delegation of authority involves giving decision-making power to lower-level managers, staff authority refers to a support role rather than decision-making authority, and distributed authority involves sharing decision-making power across different levels of the organization.

At Auternli, a Cosmetics Manufacturing Company, All Major Decisions, Such