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More levels of management are more expensive. This represents which of the following?

A. Centralization
B. Decentralization
C. Narrow span of control
D. Wide span of control

1 Answer

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Answer:

B. Decentralization

Step-by-step explanation:

The decentralization style of management is when power and authority are distributed to different levels of management. Each level of management is empowered to make certain decisions regarding its operations. Unlike in a centralized management style, where few managers are making all the decisions, decentralization has many middle-level managers making decisions.

This style of management is expensive because it creates many layers of middle-level managers. The functions of an organization are subdivided and allocated to many departments or units. Each unit or department is headed by a manager who requires a budget to run it. Many managers mean a higher payroll.

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