Question : Statement 1: In a centralized organization, decision-making is concentrated at the top level.
Statement 2: Centralized organizations often have empowered lower-level managers.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Correct Answer: Statement 1 is true, and Statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.
Statement 1 is true. Centralization involves concentrating decision-making authority at the top levels of the organization. Major decisions are made by a few individuals at the top of the hierarchy.
Statement 2 is false. In centralized organizations, lower-level managers typically have limited decision-making authority. The decision-making power is concentrated at the top, and lower-level managers have less autonomy and empowerment in making significant organizational decisions.
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