In the context of organizational authority, which of the following is a difference between centralization and decentralization?
A) Centralization is the location of most authority in the lower levels of an organization, whereas decentralization is the location of most authority in the upper levels of an organization.
B) Centralization should occur where standardization is important, whereas decentralization should occur where standardization is unimportant.
C) In a centralized organization, most decisions should be made by first-line managers, whereas in a decentralized organization, most decisions should be made by top managers.
D) An organization is centralized if it has a high degree of delegation at all levels, whereas an organization is decentralized if it has a low degree of delegation at all levels.

Question

Quizplus · Accepted Answer

Centralization refers to the concentration of decision-making authority at higher levels of the organization, while decentralization refers to the dispersion of decision-making authority to lower levels of the organization. The choice of whether to centralize or decentralize depends on the degree of standardization required in the organization's operations. If the organization's operations require a high degree of standardization, centralization is more appropriate. If standardization is not as important, then decentralization may be a better fit.

In the Context of Organizational Authority, Which of the Following