The extent to which organizations centralize or decentralize decision$-$making varies widely. In top$-$down organizations, decision$-$making is centralized. Senior managers make virtually all the decisions about how an organization operates, give lower$-$level managers and employees little input into these decisions, and expect them to implement their directives without question. In highly decentralized organizations, lower$-$level managers and employees have much more latitude to decide how to act in areas of their expertise, such as how to treat a dissatisfied customer or whether to launch a new project.

As you move into a more functional structure, select the degree of centralization that better impacts vertical coordination by influencing the amount of decision$-$making that will be done at the upper and lower levels. In each row, check all people who would be allowed to make these decisions$$there may be multiple selections in each row.