Question : Case Study 67: XYZ Corporation
Decentralization aims to:
Option 1: Concentrate decision-making at the top
Option 2: Distribute decision-making throughout the organization
Option 3: Limit cross-functional collaboration
Option 4: Reduce employee empowerment
Correct Answer: Distribute decision-making throughout the organization
Solution : The correct answer is (b) Distribute decision-making throughout the organization
Decentralization involves dispersing decision-making authority and responsibilities across various levels and units within an organization rather than concentrating it solely at the top. The objective is to empower different parts of the organization to make decisions independently, enhancing flexibility and responsiveness across the organization. It is aimed at distributing decision-making rather than concentrating it at the top, contrary to option (a). It is also not aimed at limiting cross-functional collaboration or reducing employee empowerment, but rather empowering various levels within the organization.
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