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A company decides to adopt a flat organizational structure to enhance decision-m

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Question: A company decides to adopt a flat organizational structure to enhance decision-making speed. Which principle of management does this reflect?

Options:

  1. Centralization
  2. Decentralization
  3. Unity of command
  4. Span of control

Correct Answer: Decentralization

Solution: 

Decentralization allows for quicker decision-making by distributing authority across various levels of the organization.

A company decides to adopt a flat organizational structure to enhance decision-m

Practice Questions

Q1
A company decides to adopt a flat organizational structure to enhance decision-making speed. Which principle of management does this reflect?
  1. Centralization
  2. Decentralization
  3. Unity of command
  4. Span of control

Questions & Step-by-Step Solutions

A company decides to adopt a flat organizational structure to enhance decision-making speed. Which principle of management does this reflect?
  • Step 1: Understand what a flat organizational structure is. It means fewer levels of management.
  • Step 2: Recognize that in a flat structure, employees have more authority to make decisions.
  • Step 3: Identify that this distribution of authority is called decentralization.
  • Step 4: Conclude that decentralization helps speed up decision-making because decisions can be made closer to the action.
  • Decentralization – Decentralization is the distribution of decision-making authority to lower levels in an organization, which can lead to faster responses and more empowered employees.
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