Question

Caleb is a manager at a small diner in a tourist town. There are many competing restaurants in the area, so the restaurant owners depend on Caleb and his employees to pay attention to what customers order most often to determine what the daily and weekly specials should be. Caleb has the authority to make changes to the menu and offer promotions to attract more customers. What type of organization does Caleb manage?

Answer 1

Answer:

Decentralized.

Explanation:

An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.

Basically, the organizational structure comprises of three (3) main dimensions and these are;

I. The vertical dimension: this is typically the decision-making responsibilities (decentralization and centralization).

II. The horizontal dimension: this divides the organization into subunits.

III. Integrating mechanisms: it is based typically on the strategic mechanism that controls the various subunits within an organization.

In the vertical dimension of an organizational structure, decentralization can be defined as a practice which typically involves giving decision-making authority to the lowest chain of command.

This ultimately implies that, in a decentralized organization, decision-making authority and power isn't concentrated at the top level (echelon) of the organization.

Hence, the type of organization that Caleb is managing is a decentralized organization.