The President of Silicon Company Has Just Returned from a Week

Essay

The president of Silicon Company has just returned from a week of professional development courses and is very excited that she will not have to change the organization from a centralized structure to a decentralized structure just to have responsibility centres. However, she is somewhat confused about how responsibility centres relate to centralized organizations where a few managers have most of the authority.
Required: Explain how a centralized organization might allow for responsibility centres.