When important decisions are concentrated at the top levels of an organisation, the organisation is described as:
Correct answer: B. Highly centralised
- A. Highly decentralised
- B. Highly centralised
- C. Highly informal
- D. Highly specialised
Explanation
Centralisation means decision-making authority is concentrated at higher organisational levels. Decentralisation distributes significant authority to lower levels or operating units.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Organisational Structure and Management
Organisational structure explains how authority, responsibility, communication and tasks are arranged through functional, divisional, matrix and flat designs. Management covers planning, organising, staffing, directing and controlling, alongside delegation, span of control, centralisation, decentralisation and coordination.
Practise Organisational Structure and Management
30 free Organisational Structure and Management MCQs from Introduction to Business, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Introduction to Business questions like this
Introduction to Business is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Organisational Structure and Management questions
What does span of control refer to in organisational design?
A company that creates separate units for automobiles, motorcycles and generators is using which basis of departmentalisation?
Which organisational structure gives an employee two formal reporting relationships, usually to a functional manager and a project manager?
Which feature is most closely associated with a highly formalised organisation?
The principle that each employee should receive orders from only one direct superior is known as:
When a manager assigns authority and responsibility for a task to a subordinate, this process is called: