Question

Employees at Fratelli Inc. are encouraged to participate in decision making. Organizational control is based on group norms and a strong corporate culture instead of compliance to strict rules. This is an example of _____.

a. decentralized control
b. operating control
c. autocratic control
d. bureaucratic control

Answer 1

Letter a is correct. Descentralized control.

Step-by-step explanation:

A company that has decentralized control has a more flexible hierarchy, where all employees are motivated to contribute ideas and opinions and participate in the decision making process. Decentralized management is common in large companies, such as Google and Dell, which ensures greater autonomy and freedom of action for employees.

The biggest benefits seen by decentralization are the flexibility to adapt to market changes, the speed of decision making that prevents opportunity costs, and the sense of motivation and value creation between employee and organization.