Which term describes networks that concentrate decision-making power in a single key player or small group?

Prepare for the IB Business and Management SL Exam with flashcards and multiple-choice questions. Each question includes hints and explanations to boost your confidence and success.

Multiple Choice

Which term describes networks that concentrate decision-making power in a single key player or small group?

Explanation:
Centralization of decision-making within a network means one key player or a small group holds the authority to make the major choices, and others in the network follow their direction. This hub-and-spoke setup leads to quick, uniform decisions because directions come from a single source, with power and information flowing to and from that central actor. It fits the description of networks that concentrate power in a single point. In contrast, decentralized networks push authority down to local units, matrix networks mix authority across different dimensions like function and product, and distributed networks spread decision power across many nodes. These structures don’t center power in one node the way centralized networks do.

Centralization of decision-making within a network means one key player or a small group holds the authority to make the major choices, and others in the network follow their direction. This hub-and-spoke setup leads to quick, uniform decisions because directions come from a single source, with power and information flowing to and from that central actor. It fits the description of networks that concentrate power in a single point.

In contrast, decentralized networks push authority down to local units, matrix networks mix authority across different dimensions like function and product, and distributed networks spread decision power across many nodes. These structures don’t center power in one node the way centralized networks do.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy