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Which benefit does centralization give top managers?
AFaster response to changing customer demands
BA broad view of operations and tight financial control
CFaster development of lower-level managers
DHigher job satisfaction among junior employees
Answer & Solution
Correct answer: B. A broad view of operations and tight financial control
1. Centralization concentrates key decisions at the top of the firm.
2. That lets top managers develop a broad view of operations and exercise tight financial controls.
3. It can also reduce costs by eliminating redundancy in the organization.
4. Quicker response to customers, faster development of junior managers, and higher job satisfaction are benefits claimed for decentralization instead.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.5 Degree of Centralization_
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