What characterizes a decentralized organizational structure?

• A. Many decisions are delegated to lower levels of management
• B. Most decisions are made at the top by senior executives
• C. Decisions are made solely by cross-functional teams
• D. All decisions are centralized to regional offices

Answer: (A)

In a decentralized structure, decision-making authority is pushed down to lower levels of management, giving local managers more autonomy to tailor actions to their unit’s needs. This arrangement speeds responses, improves responsiveness to local conditions, and often enhances motivation and accountability because those closest to the work have a say in how it’s done.

That’s why the statement about delegating many decisions to lower levels best describes decentralization. It reflects shifting authority away from a single central point toward the broader organization.

The other descriptions point to centralized or restricted approaches: concentrating most decisions at the top uses senior leadership for decision-making; relying solely on cross-functional teams isn’t the defining hallmark of decentralization; and centralizing all decisions to regional offices describes the opposite of decentralization.