Which organizational structure encourages employees to make decisions and solve problems due to reduced controls?

• A. Centralized organization
• B. Public Safety organization
• C. Functional organization
• D. Decentralized organization

Answer: (D)

Decentralization places decision-making authority closer to where work gets done. When controls are reduced, employees at lower levels have the freedom to act, decide, and solve problems without waiting for approvals from above. This empowerment leads to quicker responses and more initiative on the front lines. In contrast, centralized structures keep authority at the top with many approvals, which slows decisions. A functional organization groups activities by specialty rather than empowering broad decision-making, and a public safety organization describes a domain rather than a structure that inherently changes how decisions are made. Therefore, the structure that encourages employees to make decisions and solve problems due to reduced controls is the decentralized organization.