Question：Which of the following is a benefit of decentralisation?
A. Improves the motivation of junior managers
B. Reductions in bureaucracy
C. Decisions are made at one place in the organisation
D. Better crisis management
The correct answer is: Improves the motivation of junior managers
While the other options may arise in a decentralised organisation, they are not necessarily features that are specifically associated with decentralisation.
Question：Y plc is a growing organisation which has recently diversified into a number of significant new product markets. It has also recently acquired another company in one of its overseas markets.
What would be the most appropriate form of organisation for Y plc?
A. Functional departmentation
B. Geographical departmentation
D. Hybrid structure
The correct answer is: Divisionalisation
Rationale: While there may be elements of functional and geographical organisation (leading you to consider a hybrid structure), Y plc's situation suits divisionalisation: more or less autonomous product and regional businesses, with co-ordination from head office. 'Diversification' and 'acquisition' are good pointers to divisionalisation.
Pitfalls: Don't get sidetracked by the link between 'overseas markets' and 'geographical'.