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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

In an organisation where most important decisions are taken by top management and lower levels merely carry them out, the authority is said to be:

The authority is centralised. When important decisions are made by top management and lower levels only execute them, decision-making power is concentrated at the top. Decentralisation is the opposite, where authority is systematically spread to lower levels of the organisation.

  1. ADecentralised
  2. BCentralisedCorrect
  3. CDelegated fully
  4. DDiffused

Explanation

When decision-making power is concentrated at the top, the organisation is centralised. Decentralisation involves systematic dispersal of authority to lower levels, which is the opposite of the situation described.

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