Question : One way to think of the management hierarchy is as a chain of communication. The highest management makes all decisions in an organisation, therefore information moves slowly because it must pass through multiple levels. Response time is also a factor. This slows down decision-making and makes it challenging for an organisation to adjust to changing operating conditions.
Option 1: Centralised
Option 2: Decentralised
Option 3: Large
Option 4: Small
Answer (1)
17th Jan, 2024
Correct Answer: Centralised
Solution : Centralization refers to the concentration of power in a small number of top-level decision-makers. Hence, the correct option is 1.
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