Question:Which one of the following is an advantage of centralisation?
A. Controls and accountability are better
B. Senior managers can take a wider view of problems and consequences
C. It avoids overburdening top managers in terms of workload and stress
D. It helps to develop the skills of junior managers
The correct answer is: Senior managers can take a wider view of problems and consequences
Rationale: A centralised organisation is one in which authority is concentrated in one place. If all decisions are made in the same place then it will be easier for the decision-makers to see the 'bigger picture' and therefore understand the consequences of their decisions.
'It helps to develop the skills of junior managers', 'It avoids overburdening top managers in terms of workload and stress' and 'Controls and accountability are better' are advantages of decentralisation, where decisions are delegated.
Pitfalls: You may have hesitated over 'Controls and accountability are better'. The idea is that control and accountability are lessened as decisions are made further away.
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