ECONOMICS

Detailed explanation-1: -The given statement about centralization is false. It is because an organization where departments or subordinates are given freedom and authority to make decisions are known as decentralized organizations.

Detailed explanation-2: -In a centralized organization, the decision-making powers are retained in the head office, and all other offices receive commands from the main office. The executives and specialists who make critical decisions are based in the head office.

Detailed explanation-3: -When a decision is centralized, it is typically unilaterally mandated by a central, usually high-level, authority. Decentralized decisions are, instead, made at a more local level by frontline employees who are close to whomever will feel the impact.

Detailed explanation-4: -In centralized organizations, strategic planning, goal setting, budgeting, and talent deployment are typically conducted by a single, senior leader or leadership team. In contrast, in decentralized organizations, formal decision-making power is distributed across multiple individuals or teams.

Detailed explanation-5: -In a centralized organization, all of the “power” or decision-making authority lies with a group or individual at the top. The other members of the organization then work to carry out the decisions made by top-level leaders.