At Buddy's Bird Barn, every employee has to consult Buddy before completing any sale, and only Buddy can make decisions about purchasing and advertising. These rules represent ________ at Buddy's Bird Barn.
A) specialization
B) centralization
C) formalization
D) span of control
E) chain of command

Question

Quizplus · Accepted Answer

Centralization reflects where decisions are formally made in organizations. If only the top managers within a company have the authority to make final decisions, we would say that the organization has a highly "centralized" structure. In contrast, if decision-making authority is pushed down to lower-level employees and these employees feel empowered to make decisions on their own, an organization has a "decentralized" structure.

At Buddy's Bird Barn, Every Employee Has to Consult Buddy