What is the result of the policy decision of the top management?

Decentralisation

The correct answer is option 2- Decentralisation.

Decentralisation is an optional policy decision. It is done at the discretion of the top management share tasks. It is the result of the policy decision of the top management. It has wide scope as it implies extension of delegation to the lowest level of management.

Delegation is a compulsory act because no individual can perform all tasks on his own. It is a process followed to share tasks. It has narrow scope as it is limited to superior and his immediate subordinate.