In an organization, an approach where administrative services are provided from a central source to multiple locations is called what?

In an organization, an approach where administrative services are provided from a central source to multiple locations is called what?

• A. Global sourcing
• B. Division of labor
• C. Shared services
• D. Regional offices

Answer: (C)

Centralized administrative services delivered from one source to multiple locations describe a shared services model. This approach pools routine, transactional functions—such as HR, payroll, benefits administration, and IT support—into a single center (or a few centers) that serves several sites or business units. The result is standardized processes, consistent data, and usually improved efficiency and cost savings through economies of scale. The other terms refer to different ideas: global sourcing means obtaining services from external providers, often across borders; division of labor is about breaking work into specialized tasks among workers; regional offices are separate physical locations rather than a centralized hub providing services to multiple sites.

Centralized administrative services delivered from one source to multiple locations describe a shared services model. This approach pools routine, transactional functions—such as HR, payroll, benefits administration, and IT support—into a single center (or a few centers) that serves several sites or business units. The result is standardized processes, consistent data, and usually improved efficiency and cost savings through economies of scale.

The other terms refer to different ideas: global sourcing means obtaining services from external providers, often across borders; division of labor is about breaking work into specialized tasks among workers; regional offices are separate physical locations rather than a centralized hub providing services to multiple sites.