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Question : Case Study 79: 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


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

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 does not aim to limit cross-functional collaboration or reduce employee empowerment, but rather to empower various levels within the organization.

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