Question

The more a company needs to be innovative and responsive, the more likely the company will:

a.
choose functional departmentalization.
b.
decentralize the organization.
c.
reduce delegation of authority.
d.
decrease the workforce.
e.
centralize the organization.

Answer 1

b. Decentralize the organization.

When a company needs to be innovative and responsive, it is more likely to decentralize its organizational structure. Decentralization allows for more decision-making power to be given to lower-level employees, which can increase the speed of decision-making and response times. It also encourages innovation and creativity by allowing for greater autonomy and flexibility within teams.