?Maria, the owner of a large multinational company, believes that the different
ID: 423039 • Letter: #
Question
?Maria, the owner of a large multinational company, believes that the different regional centers should not have to run to her for all decisions. She believes that the company can be more efficient if the people closest to the problem have the ability to make the decisions necessary to solve the problems. To implement her beliefs, Maria has delegated power to the regional centers of the company. This is an example of _____.
top management empowerment
standardization
centralization
job specialization
decentralization
a.top management empowerment
b.standardization
c.centralization
d.job specialization
e.decentralization
Explanation / Answer
Maria has delegated power to regional centres of the company and this is the perfect example of Decentralization. In Decentralization, the power to make decisions are delegated to lower or sub levels in the organization from upper levels. It will help the company in quick decision making and also help in development of employees of the company to become future leaders.
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