PRC-3 · Chapter 3 · Question 26 of 70
What is a primary advantage of a decentralized organizational structure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It allows for faster decision-making by local managers who understand local conditions
Explanation
Decentralization pushes authority down the hierarchy, motivating lower-level managers and allowing them to respond swiftly to local market changes.
More Organization of Business MCQs
- Q28The concept of 'Span of Control' refers to:
- Q29An organization with a 'narrow' span of control will naturally tend to develop what kind of overall structure?
- Q30What is the term for the continuous, unbroken line of authority that extends from the very top of an organization down to the lowest…
- Q31A bank decides to stop maintaining its own internal payroll department and instead hires an external specialist firm to calculate wages…
- Q32Which type of organizational structure is most likely to be used by a small, newly founded startup managed directly by its ambitious owner?