The extent of an organization's centralization or decentralization approach is determined by

The correct answer would be, Levels or Layers of Hierarchy.

Explanation:

Centralization and decentralization are the concepts of business management. In Centralized organizations, decisions are made by the top management are are disseminated to the lower level management, whereas in the Decentralized organizations, decisions are made by management at every level.

The extent of an organization's centralization or decentralization can be determined by the levels or layers of hierarchy of an organization. The more the layers, higher would be the centralization, and Vice Versa.