Which term describes a structure where major decisions are made at the centre and passed down the chain of command?

Which term describes a structure where major decisions are made at the centre and passed down the chain of command?

• A. Decentralisation
• B. Centralisation
• C. Delegation
• D. Delayering

Answer: (B)

The main idea being tested is where authority to make important decisions sits within a business. Centralisation means that major decisions are concentrated at the top of the organisation, with those decisions then being passed down through the levels of management to be implemented. The description fits centralisation because the centre retains control over key choices and directs the rest of the organisation on how to act.

Decentralisation would involve handing significant decisions to regional or lower-level managers, delegation is about sharing tasks while the ultimate decision power can remain with the higher levels, and delayering changes the structure by removing layers rather than shifting where major decisions are made.