Read the passage and answer the following questions.

The McNeil name has been associated with the manufacturing and sale of pharmaceutical products since 1879, when Robert McNeil opened his first retail drug outlet in Pennsylvania. Growing as a producer of prescription pharmaceuticals, McNeil Laboratories, Inc. was incorporated in the U.S. in 1933, and became a member of the Johnson & Johnson family of companies in 1959. McNeil Consumer Healthcare began operations in Canada in an existing administrative Johnson & Johnson facility in Guelph, Ontario in 1980. McNeil Consumer Healthcare (nonprescription pharmaceutical products) in Guelph, Ontario is a member of the Johnson & Johnson family of companies in Canada. An important difference between Johnson & Johnson and most other companies — is the concept of decentralized management. Instead of operating as one large multi-billion-dollar corporation, Johnson & Johnson is operated as 190 smaller companies, each focused on a specific medical or product franchise and/or geographic area, with each affiliate generating multiple options for growth. Through decentralization we combine the advantages of being big with the agility and focus of smaller firms. Decentralization enables each company to stay close to its customer, maintain short lines of communication with customers and employees, and accelerate the development of talent. The Johnson & Johnson - Merck Consumer Pharmaceuticals company also operates from our Woodlawn Road facility in Guelph.

According to you, apart from the reasons mentioned in the paragraphs, what can be the major "Purpose" behind decentralizing?

Both option 2 and 3

The correct answer is option 4- both 2 and 3.

The question asks for the purpose of decentralization apart from what is already mentioned in the passage. While the passage highlights benefits like agility, customer focus, and talent development, the fundamental management "purpose" of decentralization—beyond those specific outcomes—is to shift the operational balance within the organizational hierarchy.

• To increase the role of subordinates (Option 2): Decentralization pushes decision-making authority down to lower levels. This inherently expands the scope and responsibility of subordinates, moving them from merely executing orders to participating in the strategic and operational direction of their specific unit.

• To give more autonomy to the subordinates (Option 3): This is the core mechanism of decentralization. By reducing centralized control, lower-level managers and departmental heads gain greater autonomy in decision-making without constant approval from the top. This empowers them to act quickly and take ownership of their results.

Why Option 1 is less suitable as a "Major Purpose": While lessening the burden of top managers is a consequence of decentralization, the primary strategic goal (purpose) in a modern business context is usually centered on empowerment, speed, and organizational growth rather than just the personal workload of upper management.

Delegation and Decentralisation: A Comparative view