The Royal Bank of Canada decided to move its loan-processing work from headquarters to branch banks in order to avoid bottlenecks.This is an example of:
A)specialization
B)formalization
C)decentralization
D)standardization

Question

Quizplus · Accepted Answer

Decentralization involves dispersing decision-making authority throughout an organization rather than centralizing it in one place. In this case, the Royal Bank of Canada is moving its loan-processing work from headquarters to branch banks, which suggests that decision-making authority is being dispersed to the branches. This is a form of decentralization. A) Specialization involves specializing job functions to improve efficiency. B) Formalization involves establishing rules and procedures to standardize behaviors and decision-making. D) Standardization involves establishing uniform processes and procedures to increase efficiency and consistency. While the decision to move loan-processing work may involve some element of specialization, formalization, and standardization, the best answer to this question is C.

The Royal Bank of Canada Decided to Move Its Loan-Processing