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Which factors decide how much decision-making authority to delegate?
AOrganization size and the speed of change faced
BThe dividend policy and the share price of the firm
CThe age of the founder and the year of incorporation
DThe number of products and the colour of packaging
Answer & Solution
Correct answer: A. Organization size and the speed of change faced
1. Several factors bear on how much authority to delegate throughout an organization.
2. They include the size of the organization and the speed of change in its environment.
3. They also include the willingness of managers to give up authority, the willingness of employees to accept it, and geographic dispersion.
4. Dividend policy, share price, founder age, and packaging have no place in that list.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.5 Degree of Centralization_
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