Which term describes the degree to which decision making is concentrated at a single point in an organization?

Which term describes the degree to which decision making is concentrated at a single point in an organization?

• A. Decentralization
• B. Centralization
• C. Chain of Command
• D. Collective Bargaining

Answer: (A)

This looks at where decision-making authority sits in an organization. When decisions are made mainly by senior management at the top, with little input from lower levels, that structure is centralized. Centralization helps keep directions consistent and fast when top leaders have control, but it can reduce responsiveness to local needs and slow decisions that could be made closer to where actions occur. The other terms aren’t about where decisions are made: the chain of command describes who reports to whom, and collective bargaining is about negotiations with a labor union. So the term that describes the degree of concentration of decision-making at a single point is centralization.

This looks at where decision-making authority sits in an organization. When decisions are made mainly by senior management at the top, with little input from lower levels, that structure is centralized. Centralization helps keep directions consistent and fast when top leaders have control, but it can reduce responsiveness to local needs and slow decisions that could be made closer to where actions occur. The other terms aren’t about where decisions are made: the chain of command describes who reports to whom, and collective bargaining is about negotiations with a labor union. So the term that describes the degree of concentration of decision-making at a single point is centralization.