Question

A decentralized organization is one in which: a. each employee in the organization is given permission to make decisions about their company. b. only top-level management is given decision-making authority. c. managers at various levels throughout the organization are given decision-making authority. d. each stockholder is given decision-making authority.

Answer 1

c. managers at various levels throughout the organization are given decision-making authority.

Step-by-step explanation:

An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.

Basically, the organizational structure comprises of three (3) main dimensions and these are;

I. The vertical dimension: this is typically the decision-making responsibilities (decentralization and centralization).

II. The horizontal dimension: this divides the organization into subunits.

III. Integrating mechanisms: it is based typically on the strategic mechanism that controls the various subunits within an organization.

In the vertical dimension of an organizational structure, decentralization can be defined as a practice which typically involves giving decision-making authority to the lowest chain of command.

This ultimately implies that, in a decentralized organization, decision-making authority and power isn't concentrated at the top level (echelon) of the organization.

Hence, a decentralized organization is an organizational structure in which managers at various levels throughout the organization are given decision-making authority.