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Questions and Answers
What is the main difference between centralization and decentralization?
What is the main difference between centralization and decentralization?
- Centralization is when authority is concentrated in the hands of a few people, while decentralization is when authority is dispersed among a number of people
- Centralization is when authority is dispersed among a number of people, while decentralization is when authority is concentrated in the hands of a few people (correct)
- Centralization is when authority is concentrated in the hands of a few people, while decentralization is when authority is concentrated in the hands of a few people
- Centralization is when authority is dispersed among a number of people, while decentralization is when authority is dispersed among a number of people
What is the main purpose of decentralization?
What is the main purpose of decentralization?
- To allow for better coordination and control.
- To allow for more innovation and creativity. (correct)
- To allow for better decision making.
- To allow for more authority in the hands of a few people
What is organizational authority?
What is organizational authority?
- The power to make decisions and issue instructions. (correct)
- The power to make decisions but not issue instructions.
- The power to issue instructions but not make decisions.
- The power to make decisions and take actions.
Study Notes
- Organizational authority is the power to make decisions and issue instructions.
- In an organization, authority is usually concentrated in the hands of a few people at the top of the hierarchy.
- However, decentralization of authority is a tendency to disperse decision making authority in an organized structure.
- This tendency is seen in all organizations to some degree.
- Centralization is when authority is concentrated in the hands of a few people, and decentralization is when authority is dispersed among a number of people.
- Both tendencies have advantages and disadvantages. Centralization allows for better coordination and control, while decentralization can lead to more innovation and creativity.
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Description
Test your knowledge of organizational authority, centralization, and decentralization with this quiz. Learn about the advantages and disadvantages of centralization and decentralization in decision making.
