Question : Case Study 33: Creative Solutions
Creative Solutions, a design agency, is considering the concept of decentralization.
Question:
Decentralization benefits an organization by:
Option 1: Increasing role ambiguity
Option 2: Enhancing accountability
Option 3: Concentrating decision-making
Option 4: Limiting cross-functional collaboration
Correct Answer: Enhancing accountability
Solution : The correct answer is (b) Enhancing accountability
Decentralization benefits an organization by enhancing accountability. When decision-making authority is distributed throughout various levels and units within the organization, individuals or teams become accountable for their actions and decisions related to their respective areas of responsibility. This accountability fosters a sense of ownership and responsibility, ultimately contributing to improved performance and efficiency. Decentralization can also promote innovation, agility, and flexibility within the organization, as decision-making is pushed closer to the point of action.
