In an organization that has high centralization, ________.
A) the corporate headquarters is located centrally to branch offices
B) all top level officials are located within the same geographic area
C) action can be taken more quickly to solve problems
D) new employees have a great deal of legitimate authority
E) top managers make all the decisions and lower level managers merely carry out directions

Question

Quizplus · Accepted Answer

High centralization means that decision-making authority is concentrated at the top level of the organization, with lower-level managers and employees simply carrying out directions. Therefore, option E is the correct choice. Option A talks about physical location, Option B is not necessarily true, Option C could be true for both centralized and decentralized organizations, and Option D is not necessarily true in a centralized organization.

In an Organization That Has High Centralization, ________