............is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful.

Decentralisation

The correct answer is option 2- Decentralisation.

Decentralisation is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful.

Decentralisation is much more than a mere transfer of authority to the lower levels of management hierarchy. It is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful. They can assume the responsibility for the effective implementation of their decisions. Thus this philosophy recognises the decision maker’s need for autonomy. The management,  however, needs to carefully select those decisions which will be pushed down to lower levels and those that will be retained for higher levels.

OTHER OPTIONS

• Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.

• Centralisation- An organisation is centralised when decision making authority is retained by higher management levels whereas it is decentralised when such authority is delegated. Complete centralisation would imply concentration of all decision making functions at the apex of the management hierarchy.

• Democratic leadership style- A democratic leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decision-making. This kind of leadership style is more common now-a-days, since leaders also recognise that people perform best if they have set their own objectives.