Question

Which of the following is not true about subunits in decentralized organizations? Decision-making power resides in...

Which of the following is not
true about subunits in decentralized organizations?

Decision-making power resides in individual subunits.

Decision-making power resides in multiple subunits.

Subunits interact by supplying goods to one another.

Subunits interact by supplying services to one another.
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Answer #1

EXPLANATION- Subunits in decentralized organizations- decentralized organizations are termed as delegation of authority,responsibility and accountability.Such organizations believe in division to reduce burden on top management rather than centralization of decision-making.By the explanation it is concluded that these statements are true-

Decision-making power resides in multiple subunits

Subunits interact by supplying goods to one another

Subunits interact by supplying services to one another

The statement that is not true is Decision making power resides in individual subunits because it is based on division of decision making power in multiple subunits.

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