The President of Silicon Company Has Just Returned from a Week

question 140

Essay

The president of Silicon Company has just returned from a week of professional development courses and is very excited that she will not have to change the organization from a centralized structure to a decentralized structure just to have responsibility centers. However, she is somewhat confused about how responsibility centers relate to centralized organizations where a few managers have most of the authority.
Required:
Explain how a centralized organization might allow for responsibility centers.

---

Definitions:

Electricity Generation

The process of producing electrical power through various means such as thermal, hydro, nuclear, wind, and solar energy conversion.

Natural Gas

A fossil fuel composed primarily of methane, used as a source of energy for heating, cooking, and electricity generation.

Output Per Million BTUs

The amount of a product or service produced per million British Thermal Units of energy consumed.

Thomas Malthus

An English economist and demographer known for his theory that population growth would outstrip food supply, leading to poverty and famine.