Question : Case Study 28: XYZ Corporation
XYZ Corporation, a multinational company, is looking to implement decentralization to enhance its decision-making process.
Question:
Decentralization involves:
Option 1: Concentrating decision-making at the top
Option 2: Distributing decision-making throughout the organization
Option 3: Eliminating cross-functional teams
Option 4: Reducing employee empowerment
Correct Answer: Distributing decision-making throughout the organization
Solution : The correct answer is (b) Distributing decision-making throughout the organization
Decentralization involves distributing decision-making authority throughout the organization rather than concentrating it at the top. This means delegating decision-making powers to lower levels of the organization, allowing various departments or units to have more autonomy and make decisions that align with their responsibilities and expertise. Decentralization promotes a sense of ownership and empowerment among employees at different levels, leading to a more efficient and responsive decision-making process.
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