According to the text,successful firms tend to set up
A)an organizational architecture that is complex and decisions are "top-down."
B)an organizational architecture that is least expensive and decisions are "top-down."
C)an organizational architecture that links decision making with decision rights.
D)an organizational architecture that keeps decision rights reserved for the senior management.

Question

Quizplus · Accepted Answer

The text states that successful firms tend to set up an organizational architecture that links decision making with decision rights. This means that decision making is distributed to those who have the authority to make decisions, rather than just the senior management. This approach allows for quicker decision making and a more efficient organization. Option A is incorrect because complexity is not necessarily an indicator of success, and top-down decision making can lead to slower decision making and less innovation. Option B is also incorrect because while cost is important, it is not the only factor in creating a successful organizational architecture. Option D is incorrect because keeping decision rights reserved for the senior management can lead to bottlenecks and a lack of agility in decision making.

According to the Text,successful Firms Tend to Set Up