Foundations of Business: Chapter 7: Creating a Flexible Organization: Learn It 7-4: Delegation, Decentralization, and Centralization

Accountability

Is the obligation of a worker to accomplish an assigned job or task.

The duty to do a job or perform a task is called ______. -accountability -authority -responsibility -delegation

responsibility

Which of the following is not true about a decentralized company? -A decentralized structure allows employees to quickly make decisions concerning customers. -Decentralization works well in organizations that are complex and unpredictable. -A decentralized company often has a strong corporate image and a uniform customer approach across the front lines. -A company that is decentralized allows for decision making at various organization levels.

A decentralized company often has a strong corporate image and a uniform customer approach across the front lines.

Responsibility

Is the duty to do a job or perform a task. For example, a manager assigns tasks to their employees in order to meet the organization's goals.

Authority

Is the power, within an organization, to accomplish an assigned job or task. This may include the power to obtain information or make decisions regarding the task.

Decentralized Organization

Management consciously attempts to spread authority widely across various organization levels. This allows employees to make decisions regarding customer needs quickly and effectively. They can also capitalize on opportunities that require immediate action—if decision making was centralized these opportunities could disappear before a decision was made. This works well in organizations that are complex and unpredictable.

Centralized Organization

Management works to concentrate authority at the upper levels. The advantages of having a centralized organization are that it is simple and efficient, and often results in a strong corporate image and a uniform customer approach across the front lines. Centralization works well in organizations where decisions may be risky—upper management handles these decisions.

Which of the following statements is not true regarding responsibility, authority, and accountability? -Accountability cannot be delegated or shared. -Responsibility cannot be delegated, but it can be shared. -Responsibility can be delegated but cannot be shared. -Authority can be delegated, but it cannot be shared between workers.

Responsibility can be delegated but cannot be shared.

Delegation

Assigns work and power to other workers.

______ is the power, within an organization, to accomplish an assigned job or task. -Responsibility -Accountability -Delegation -Authority

Authority