What kind of organization becomes more responsive to its environment by breaking the company into more manageable units?
A) Centralized
B) Decentralized
C) Geographic
D) Process-oriented
E) Customer departmentalized

Question

Quizplus · Accepted Answer

Decentralization means breaking down the organization into smaller, more manageable units. This allows for quicker decision-making and a better response to changes in the environment as each unit can adapt independently. Centralization involves having all decision-making power concentrated in one central group, which can be slow to react to changes. Geographic, process-oriented, and customer departmentalization are all forms of organizational structure, but do not necessarily relate to responsiveness to the environment.

What Kind of Organization Becomes More Responsive to Its Environment