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Question

When decision-making authority is retained by higher management levels, the organisation is said to be ______.


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Solution

(a) Fragmented

(b) Centralised

(c) Decentralised

(d) None of the above

Answer (b) Centralised

Explanation: Centralised alludes to an arrangement whereby the decision-making powers are given to a couple of leaders at the highest point of the hierarchical framework. Decisions are made at the top-level management and imparted to the lower level of management for execution.


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