Read the following passage and answer the following questions.

Garg Chemist has branches all over the country. Recently, they changed how they make decisions. The lower-level managers can now make decisions on their own and trust their judgments. This change has really helped the company succeed. Employees are now handling projects on their own, gaining valuable experience that can help them move up in the company to more important roles in the future. The company believes that delegation is essential. Even before they started decentralizing, the company was doing well. Managers knew that by properly giving tasks to others, they could focus on more important things. This is how the company grew. Delegating also helped establish good relationships between managers and their teams, making reporting relationships clear. The company focuses on specialized products. In the future, managers will have plenty of opportunities to show their skills and grow in their roles.

Which importance of decentralization is highlighted in the above case?

Development of initiative among subordinates

The correct answer is option 1- Development of initiative among subordinates.

The lower-level managers can now make decisions on their own and trust their judgments. This change has really helped the company succeed. Employees are now handling projects on their own, gaining valuable experience that can help them move up in the company to more important roles in the future. This line showed the development of initiative among subordinates.

Decentralisation helps to promote self-reliance and confidence amongst the subordinates. This is because when lower managerial levels are given freedom to take their own decisions they learn to depend on their own judgment. It also keeps them in a state wherein they are constantly challenged and have to develop solutions for the various problems they encounter. A decentralisation policy helps to identify those executives who have the necessary potential to become dynamic leaders.