The board of Sunbeam Ltd. made a policy decision that branch managers, and even section heads at the lowest level, would take their own decisions on local purchases and staff leave, with little checking from the head office. Identify the concept followed and its purpose.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Decentralisation; its purpose is to increase the role of the subordinates by giving them more autonomy.
Option (1) Delegation; its purpose is to lessen the burden of the manager. — Incorrect. Both parts describe delegation, which stays between a superior and his immediate subordinate. Sunbeam’s board made a policy that reaches section heads at the lowest level, so it is not delegation.
Option (2) Decentralisation; its purpose is to lessen the burden of the manager. — Incorrect. The concept is right, but lessening the manager’s burden is the purpose of delegation.
Option (3) Delegation; its purpose is to increase the role of the subordinates by giving them more autonomy. — Incorrect. The purpose is right, but delegation is a compulsory act, not a board policy reaching every level.
Option (4) Decentralisation; its purpose is to increase the role of the subordinates by giving them more autonomy. — Correct. The board took an optional policy decision that extends delegation to the lowest level, even to section heads. That is decentralisation. It gives subordinates more autonomy.
Delegation shares tasks between a superior and his immediate subordinate; decentralisation spreads delegation to every level.
Note: This question is built on the comparison table near the end of the chapter. A small table like this holds many exam points, so read it row by row.
NCERT (2026-27 Edition):
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