Question

Factors that bear upon a company's organization include the external environment in which the firm operates, the nature of the decision to be made, the abilities of lower-level managers, and the firm's established practices. If a firm operates in a complex unpredictable environment with dependable lower-level managers, which of the following would be most likely true about the company?

a. It will be a centralized organization.
b. It will be a decentralized organization.
c. Top management will concentrate authority at the upper levels of management.
d. Top management will delegate authority only when necessary to achieve an immediate goal.

Answer 1

B) It will be a decentralized organization.

Step-by-step explanation:

On a decentralized organization, decision making power is disseminated from upper management to middle and lower level management. Middle and lower level management are responsible for making most decisions in the organization, especially regarding operating level activities and minor financial issues.

This type of organization is opposed to centralized organizations where most decisions are made by upper management.

Answer 2

b. It will be a decentralized organization.

Step-by-step explanation:

A decentralized organization is one in which most decisions are made by mid-level or lower-level managers, rather than being made centrally by the head of the company.