Which best describes decentralized organization?

• A. Distinct separate units with degrees of independence
• B. Centralized planning
• C. It equals line and staff
• D. It eliminates autonomy

Answer: (A)

Decentralized organization means decision-making authority is distributed to lower levels, giving units autonomy to act within overall goals. The description that best fits this is distinct separate units with degrees of independence, because each unit can tailor decisions to its local context while remaining aligned with the organization's objectives.

This setup contrasts with central planning, which concentrates decisions at the top; it also isn’t simply about line and staff, which describes a reporting and advisory relationship rather than how much autonomy units have. And it certainly isn’t about eliminating autonomy, which would contradict the essence of decentralization.