Read the following statements and mark the correct option carefully.
Assertion: Decision making is very slow in a centralized organisation.
Reasoning: In a centralized organisation, every decision is taken by top management and information has to pass through many levels.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both the assertion and reasoning are correct, and the reasoning provides a correct explanation for the assertion. In a centralized organization, decision-making authority is concentrated at the top management level, and all decisions must pass through the hierarchical levels. This can lead to a slow decision-making process because information needs to travel up and down the organizational hierarchy before decisions are made. The concentration of decision-making authority at the top can result in a bottleneck, slowing down the overall decision-making process in a centralized organization.