Question : Case Study 32: E-Commerce Haven
E-Commerce Haven, an online marketplace, is exploring the concept of authority in its structure.
Question:
The significance of authority is to:
Option 1: Enhance employee motivation
Option 2: Promote excessive centralization
Option 3: Streamline communication
Option 4: Enable effective decision-making and control
Correct Answer: Enable effective decision-making and control
Solution : The correct answer is (d) Enable effective decision-making and control
The significance of authority within the context of E-Commerce Haven, or any organization for that matter, is to enable effective decision-making and control. Authority allows individuals or positions within the organization to make decisions, give directions, and control the actions that contribute to the achievement of organizational goals. It provides a structured framework for decision-making processes, ensuring that actions align with the organization's objectives and strategies.