When should centralized decision-making be used?

When should centralized decision-making be used?
A . When there are significant economies of scale
B. When making frequent decisions
C. When decisions need specific local context
D. When decisions are short-term in duration

View Answer

Answer: A

Explanation:

It makes little economic sense to have duplication of effort, misalignment, or inequity. One overall authority in areas such as payroll, procurement, legal, quality assurance, and safety can often improve economies of scale with centralized decision making.