Question

tyler jones is the ceo of a medium-sized manufacturer of bedding and blankets. tyler insists on making all decisions as to styles that are manufactured, the type of material that will be used in each, the sources from whom the company will purchase yard goods, thread, and buttons, and the shippers the company will use. which of the following terms describes this company?

elaboration stage
centralization
formalization
standardization

Explanation:

Analyze the scenario

The scenario describes Tyler Jones, the CEO of a manufacturer, who insists on making all decisions regarding styles, materials, suppliers, and shippers himself. This concentration of decision-making authority at the top level of the hierarchy is a key characteristic of an organization's structure.

Define the options

• Elaboration stage: A phase in the organizational life cycle characterized by collaboration and teamwork.
• Centralization: The degree to which decision-making authority is concentrated at higher levels of an organization.
• Formalization: The degree to which organizational jobs are standardized and guided by rules and procedures.
• Standardization: The process of making things conform to a standard or uniform specification.

Apply the concepts

Using the Organizational Decision Making knowledge point, we evaluate where decision-making authority lies. Because Tyler, the CEO, retains all decision-making power rather than delegating it to managers or employees, the company's decision-making structure is highly concentrated at the top. This structural characteristic is defined as centralization.

Answer:

• Elaboration stage
• Centralization (Correct answer)
• Formalization
• Standardization