ACCA Applied Knowledge · Business and Technology · Business organisational structure
Which factor would most strongly favour a move towards greater centralisation in an organisation?
A need for tighter control after a serious fraud favours greater centralisation, because concentrating authority at the top improves oversight and consistency. Dispersed operations, skilled local managers wanting autonomy and rapidly changing local conditions all push an organisation towards decentralisation instead.
- AGeographically dispersed operations serving very different customers
- BA need for tight control after a serious fraud caused by weak oversightCorrect
- CHighly skilled local managers seeking more autonomy
- DRapidly changing local market conditions
Explanation
A need for tight control and consistent oversight after a fraud supports concentrating authority at the centre. Dispersed operations, skilled local managers and rapidly changing local conditions all favour decentralisation because they require local knowledge and responsiveness.
Did you get it right without looking?
One question tells you little. A timed set on Business organisational structure shows your real accuracy, how long you take and where you lose marks.
More Business organisational structure questions
- A consultancy firm removes several layers of middle management so that senior partners directly supervise a much larger number of staff. Whi…
- Which of the following best describes a formal organisation?
- Mintzberg described a professional bureaucracy. Which of the following organisations best fits it, and why?
- Which of the following is the most likely benefit of a highly centralised organisational structure?
- Which of the following is a typical disadvantage of a bureaucratic structure operating in a rapidly changing market?
- Zeta Retail operates 40 stores. Head office sets all prices, selects all products and approves any spending above $200. Store managers compl…