Final answer:
Hewlett-Packard's approach of allowing units to set their goals and determine their own rewards is an example of decentralization, which distributes decision-making across different levels of the organization. Option b.
Step-by-step explanation:
By allowing units to set their goals and determine rewards for reaching them, Hewlett-Packard is applying decentralization option b. This is part of the organizational strategy where decision-making is distributed throughout various levels of the organization rather than being confined to a top management team. This approach is in direct contrast to centralization, where decision-making is concentrated at the top of the hierarchy. Decentralization can enhance flexibility and responsiveness, as it empowers lower-level managers and employees to make decisions that can better respond to customers' needs and local market conditions.