Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

In which of the following concept decision making authority is pushed down the chain of command?

Options:

Accountability

Centralisation

Decentralisation

Responsibility

Correct Answer:

Decentralisation

Explanation:

The correct answer is option 3- Decentralisation.

In decentralisation, decision making authority is pushed down the chain of command.

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.

 

OTHER OPTIONS

  • Accountability- Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for satisfactory performance of work. It indicates that the manager has to ensure the proper discharge of duties by his subordinates. It is generally enforced through regular feedback on the extent of work accomplished.
  • Centralisation- Centralization refers to the concentration of decision-making authority at higher levels of management within an organization. In a centralized structure, key decisions are made by top management, and lower levels of management have limited autonomy in decision-making.
  • Responsibility- Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior– subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Thus, responsibility flows upwards, i.e., a subordinate will always be responsible to his superior.