In an organization that has a functional structure, a centralized decision-makin

Question

In an organization that has a functional structure, a centralized decision-making mechanism

ensures that work units can always be relied on to make decisions that are in the best interests of the organization as a whole.

guarantees that authority is distributed throughout the lower levels of the organization.

leads to work units that are semi-autonomous and do not receive any instruction from the top of the organization.

results in work units that are self-sufficient and not dependent on others.

helps in the resolution of conflict between sub-units.

Explanation / Answer

Option helps in the resolution of conflict between sub-units.

Centralised decision making in a functional structure helps in preventing possible situations where disputes can arise. Different groups or sub units working in different functional departments come across situations where they aren't able to understand and cope with other department's work which may lead to dispute, sometimes. What centralised decision making mechanism does is that each functional department is required to follow decisions that flow down from the top management which reduces the chances of disputes as there is no confusion and less coordination required on their own.

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