A Disadvantage of the Centralized Organization Is That It

question 29

Multiple Choice

A disadvantage of the centralized organization is that it

• A)lengthens response times by those closest to the market conditions because they must seek approval for their actions.
• B)does not encourage responsibility among lower-level managers and rank-and-file employees.
• C)discourages lower-level managers and rank-and-file employees from exercising any initiative.
• D)diverts authority away from those closest to, and most knowledgeable about, the situation for actions.
• E)results in higher-level managers being unaware of actions taken by empowered personnel under their supervision.

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Definitions:

Completely New Market

An entirely untapped or recently created market space that has not been served by existing products or services.

Early Adopters

Individuals or businesses who use or adopt new products, services, or technologies early in their life cycle, often influencing others in their purchasing decisions.

Opinion Leaders

Influential members of a community or group whose advice or example significantly influences others' attitudes or behaviors.

Diffusion of Innovation

The process by which a new idea, product, or behavior spreads through a population or social system over time.