Question

Topline is a department store chain and does business in many countries. The store managers had complained that they would like to offer different goods to meet local tastes but the centralized purchasing group did not allow them to make such decisions. The president decided to give the local store managers a significant amount of authority to source much of the goods they need. This decision improves the sales and profit margins at those stores. The company has changeda. From centralization of authority to decentralization.b. From decentralization of authority to centralization.c. All of the above.d. None of the above.

Answer 1

Answer: From centralization of authority to decentralization.

Explanation:

Centralization is when decisions are taken by the bosses or those at the top tier in the workplace. Decentralization is when lower level staffs are involved in making decisions in a company.

Since Topline moved away from the centralization to the president giving authorities to the local store managers, this represents centralization of authority to decentralization.