Given below are two statements:
Assertion (A): In a decentralised organisation, decisions are taken faster than in a centralised organisation.
Reason (R): Decentralisation leaves the top management with more time, which they can devote to important policy decisions.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): In a decentralised organisation, decisions are taken faster than in a centralised organisation. — True. In a decentralised organisation, decisions are taken at levels nearest to the points of action. No approval is needed from many levels, so the process is much faster.
Reason (R): Decentralisation leaves the top management with more time, which they can devote to important policy decisions. — True. Lower levels take the operational decisions. So the top management is free to give its time to important policy decisions.
Why R does not explain A?
R is about the top management’s time, which now goes to policy decisions. It does not say why decisions at lower levels are taken faster. The real reason for A is that decisions are taken close to where the work is done and need no approval from many levels. Information also does not pass through long channels, so it is less likely to get distorted.
NCERT (2026-27 Edition): “(iii) Quick decision making: The management hierarchy can be looked upon as a chain of communication. In centralised organisation because every decision is taken by the top management the flow of information is slow as it has to traverse many levels. Response also takes time. This reduces the speed of decision making and makes it difficult for an enterprise to adapt to dynamic operating conditions. In a decentralised organisation, however ,since decisions are taken at levels which are nearest to the points of action and there is no requirement for approval from many levels, the process is much faster. There are also less chances of information getting distorted because it doesn’t have to go through long channels.” “(iv) Relief to top management: Decentralisation diminishes the amount of direct supervision exercised by a superior over the activities of a subordinate because they are given the freedom to act and decide albeit within the limits set by the superior. Also, personal supervision is generally replaced by other forms of control such as return on investment etc. Decentralisation also leaves the top management with more time which they can devote to important policy decisions rather than occupying their time with both policy as well as operational decisions. …” |