Gabriella recently accepted a job with a large insurance firm as an internal auditor.Gabriella has found that her new job is quite different than the internship she had at an accounting consulting firm.The insurance firm has strictly defined job responsibilities and lines of communication.It seems that for every decision that Gabriella needs to make,approval must be obtained from upper management! Overall,she has found the atmosphere to be quite formal as compared to the internship.Gabriella has correctly concluded that of the following choices,the insurance firm has

Question

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The description of strictly defined job responsibilities and the need for approval from upper management indicate a high degree of centralization within the insurance firm. A wide span of control would involve a manager overseeing a large number of subordinates, which is not mentioned in the scenario. Decentralized authority would involve decision-making being spread throughout the organization, which is also not mentioned. A matrix design would involve employees reporting to multiple managers, which is not mentioned. There is also no indication of an ineffective staff.

Gabriella Recently Accepted a Job with a Large Insurance Firm