Refer to Scenario 1. What is the key trade-off that is in play in the above example?

(A) The trade-off between the local responsiveness that a decentralised divisional structure gives you on the one hand, and the increased efficiency and coordination that a more centralised structure could give you on the other

(B) The trade-off between the local coordination and efficiency that a decentralised divisional structure gives you on the one hand, and the increased responsiveness that a more centralised structure could give you on the other

(C) The trade-off between local responsiveness and efficiency that a decentralised divisional structure gives you on the one hand, and the increased coordination that a more centralised structure could give you on the other

(D) The trade-off between local responsiveness and coordination that a decentralised divisional structure gives you on the one hand, and the increased efficiency that a more centralised structure could give you on the other

Explanation

The key trade-off that’s in play in the above example is the Responsiveness vs Coordination trade-off. It is not possible to focus on increasing the coordination in the organisation during centralisation and it is not possible to be responsive to every need of the members of the organisation, especially during decentralisation.

Conclusion

This question is a part of the Weekly Quiz 3 section from the Organisational design: Know your organisation course. You can check out all the quiz answers to this exam in our Organisational design: Know your organisation Quiz Answers page.

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