Centralised and Decentralised Organisational Structures Quiz

What is a key characteristic of a centralised organisational structure?

• Decisions are made at lower levels

• Decisions are made at the top of the business

• There is a bottom-to-top flow of ideas

• Local managers have significant input

Which of the following is an advantage of a centralised organisational structure?

• Faster response to local changes

• Consistency across the business

• Increased flexibility

• Improved employee motivation

What is a disadvantage of a centralised organisational structure?

• Too much power is given to a few individuals

• Increased job satisfaction for employees

• More room for promotion

• Greater flexibility in decision making

In a decentralised organisational structure, decision-making authority is:

• Limited to senior managers

• Centralised in a head office

• Delegated to lower levels

• Concentrated at the top

Which of the following is an advantage of a decentralised organisational structure?

• Improved employee motivation

• Less consistency across the business

• Standardised procedures

• Increased control by senior management

What is a disadvantage of a decentralised organisational structure?

• Stronger leadership in times of crisis

• Increased consistency across the business

• Inconsistent decision making

• Improved communication

Which structure allows for quicker response to changes in the business environment?

• Hierarchical

• Centralised

• Matrix

• Decentralised

In a centralised structure, who typically makes the business decisions?

• Store managers

• Middle managers

• Senior managers

• Employees

Which structure might lead to demotivation due to lack of input in decision making?

• Flat

• Networked

• Decentralised

• Centralised

What is a potential benefit of decentralisation for middle and junior managers?

• Less responsibility

• More room for promotion

• Limited decision-making authority

• Reduced job satisfaction