Match the following.

A- III, B-I, C-IV, D-II

The correct answer is option 2- A- III, B-I, C-IV, D-II.

A) Centralisation- Authority retained at top levels. An organisation is centralised when decision-making authority is retained by higher management levels. Complete centralisation would imply concentration of all decision making functions at the apex of the management hierarchy. Such a scenario would obviate the need for a management hierarchy

B) Formal organisation- Created deliberately. Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task. It is deliberately designed by the top management to facilitate the smooth functioning of the organisation

C) Decentralisation- Managers at all levels enjoy freedom of decision making. When decision making authority is delegated to all level of management then the company followed decentralisation. Delegation of all decision making functions to the lower level of the hierarchy. Decentralisation explains the manner in which decision making responsibilities are divided among hierarchical levels. Put simply, decentralisation refers to delegation of authority throughout all the levels of the organisation. Decision making authority is shared with lower levels and is consequently placed nearest to the points of action. In other words decision making authority is pushed down the chain of command. When decisions taken by the lower levels are numerous as well as important an organisation can be regarded as greatly decentralised.

D) Informal organisation- Interpersonal relationships. An informal organisation is an aggregate of interpersonal relationships without any conscious purpose but which may contribute to joint results. Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation has no set of behaviour as there is no rigid rules and regulations.