Which of these statements about decentralization is FALSE?
A)Organizations decentralize as they grow larger.
B)Different degrees of decentralization can occur simultaneously in different parts of the organization.
C)Organizations operating in diverse environments are more effective when they centralize decision making.
D)Optimal level of decentralization depends on several contingencies.
E)Large organizations that remain centralized tend to become less responsive to the external environment.

Question

Quizplus · Accepted Answer

Organizations operating in diverse environments may actually benefit from decentralization as it allows for more local decision making and adaptation to specific environmental factors. Centralization may hinder responsiveness and innovation in such situations.

Which of These Statements About Decentralization Is FALSE