Lucy who is the chief executive of Alex plc has recently been discussing problems caused by the centralised nature of the company’s decision-making processes, which have led to accusations from staff and some customers that the company is increasingly slow and unresponsive.
Lucy is keen to increase the amount of decentralised decision-making over the next year.
Which THREE of the following are likely to increase the amount of decentralisation that is possible within Alex plc?
A The company’s authoritarian management style
B The well-skilled workforce
C The company’s large size
D The slow pace of technological change in the company’s markets
E The effectiveness of communication across the company
Select ONE answer:
- ABC
- ACD
- BCD
- BCE
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct-Decentralisation depends on workforce ability (B) company size (C) – the larger the organisation, the harder it is to centralise – and effective communication (E), which is an essential ingredient of effective delegation. Centralisation and decentralisation refer to the extent to which authority for decision-making is either retained at the top of the organisation or delegated to lower levels.
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