.........................involves giving authority to subordinates.

Delegation

The correct answer is option 3- Delegation.

Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a pre-requisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. It also satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative. Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do. However, delegation does not mean abdication. The manager shall still be accountable for the performance of the assigned tasks. Moreover, the authority granted to a subordinate can be taken back and redelegated to another person. Thus, irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation.

Why Not Option 2: Decentralization — While this also involves giving authority to subordinates, it is a policy matter that applies to the entire organization. It refers to the systematic dispersal of authority to all levels of management. Delegation is the "act," while decentralization is the "result" of consistent delegation throughout the firm.