Question : Case Study 39: XYZ Corporation
Decentralization is likely to lead to:
Option 1: Increased accountability
Option 2: Role ambiguity
Option 3: Centralized decision-making
Option 4: Streamlined communication
Correct Answer: Increased accountability
Solution : The correct answer is (a) Increased accountability
Decentralization is likely to lead to increased accountability. When decision-making authority is dispersed across various levels of the organization in a decentralized structure, individuals or teams at each level become responsible and accountable for the decisions they make and the outcomes of those decisions. This increased accountability promotes a sense of ownership and responsibility, which is a key feature of decentralization.