GENERAL KNOWLEDGE

GK

BUSINESS MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Traditionally, businesses have used
A
decentralized organization
B
matrix organization
C
centralized organization
D
flattened organization
Explanation: 

Detailed explanation-1: -Businesses that have a centralised structure keep decision-making firmly at the top of the hierarchy (among the most senior management). Fast-food businesses like Burger King, Pizza Hut and McDonald’s use a predominantly centralised structure to ensure that control is maintained over their many thousands of outlets.

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: -A traditional organizational structure follows a system in which power flows upward through the organization, and all employees follow a chain of command. The traditional organizational chart may look like a pyramid.

Detailed explanation-4: -Divisional structure The centralized structure, known as a divisional organization, is more common in enterprise companies with many large departments, markets or territories. For example, a food conglomerate may operate on a divisional structure so that each of its food lines and products can have full autonomy.

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