The Acme Global Corporation prefers to concentrate decision making at the top of the organizational chart.This allows the company to focus on hiring good decision makers in only a few jobs.This would indicate that Acme Global has a high degree of _________ in its structure.
A)centralization
B)vertical differentiation
C)horizontal differentiation
D)formalization

Question

Quizplus · Accepted Answer

Centralization refers to the degree to which decision making is concentrated at the top of the organizational chart. This aligns with the statement that Acme Global Corporation prefers to concentrate decision making at the top, indicating a high degree of centralization in its structure. Vertical differentiation refers to the number of hierarchical levels in an organization, horizontal differentiation refers to the division of labor and specialization, and formalization refers to the degree of rules and procedures in place. While these elements may also be present in Acme Global's structure, the statement specifically refers to a preference for centralization.

The Acme Global Corporation Prefers to Concentrate Decision Making at the Top