A highly centralized organizational structure
A) allows top executives to retain authority for most strategic and operating decisions.
B) is based on strict enforcement of detailed procedures backed by rigorous managerial oversight as the most reliable way to keep the daily execution of strategy on track.
C) allows for tight control from the top that makes it easy to fix accountability when things do not go well.
D) relies on the assumption that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and,further,that they lack the knowledge and judgment to make wise decisions about how best to do their work.
E) All of these choices are correct.

Question

Quizplus · Accepted Answer

In a highly centralized organization structure,top executives retain authority for most strategic and operating decisions and keep a tight rein on business-unit heads,department heads,and the managers of key operating units; comparatively little discretionary authority is granted to front-line supervisors and rank-and-file employees.The command-and-control paradigm of centralized structures is based on the underlying assumptions that front-line personnel have neither the time nor the inclination to direct and properly control the work they are performing and that they lack the knowledge and judgment to make wise decisions about how best to do it.

A Highly Centralized Organizational Structure