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(a) The environment is complex and uncertain(b) Decisions are relatively minor(c) Lower level managers are capable and experienced decision-makers(d) The company is geographically dispersed(e) Lower level managers are reluctant to be involved in decision-making
When the top level managers centralize power to themselves its caused by lack of trust of the abilities of the middle and lower level managers and also that the decision which they need to take is very complex and decides the direction which the company may want to take and also if it affects the future of the company for example top level managers come up with the vision of the company the after that they will disseminate it downward to the rest of the employees.
answer E _______________________________
(e)
Centralization refers to the degree to which decision-making is concentrated at a single point in the organization. The characteristic that makes centralization more appropriate is when lower level managers are reluctant to be involved in decision-making. Hence, option (e) is correct.
