Chapter 10, Problem 10.3SE

Identify centralized and decentralized organizations (Learning Objective 1)

The following table lists a series of descriptions of decentralized organizations or centralized organizations. For each description, indicate whether that scenario is more typical of a decentralized organization or a centralized organization.

Characteristic	Decentralized (D) or Centralized (C)
a. Summit Corporation now has a single payroll department, a single human resource department, and a single administrative headquarters since the corporation “flattened” its organization structure.
b. Crafty Times is a small, independent craft shop and is managed by its owner.
c. The Terracotta Company, Inc., is managed by its owner, who oversees production, sales, engineering, and the other administrative functions.
d. Cheshire Furniture, Inc., is divided into several operating units.
e. Duffy Holdings wants its managers to be able to respond quickly to changes in local market demand so that the managers have the authority to make decisions about product offerings and pricing.
f. Palm Springs Resorts and Hotels, Inc., wants to empower its managers to make decisions so that the managers’ motivation is increased and retention of managers increases.
g. Tanner Corporation has formal training programs for lower-level managers and has a policy that it promotes from within the company whenever possible.