Big Market Ltd. Is a well-known chain of store offering various products under one roof. The company owns 20 stores in India. Each store is placed under a manager who is allowed to run their stores autonomously by deciding about the products which may be promoted, appointment of staff, to handle customers complaints etc. As these managers have a deeper knowledge of local situations, it enables them to take these decisions effectively keeping in view the local circumstances and consumers needs. This approach helps to improve customer service and at the same time serves to boost morale and increase the job satisfaction of the store managers as it empowers them to innovate and use their initiative.

Identify the approach followed by Big Market Ltd.

Decentralization

The correct answer is option 2- decentralisation.

The approach followed by Big Market Ltd. is "Decentralization." In a decentralized organizational structure, decision-making authority is distributed among lower-level managers or units. In this case, each store is placed under a manager who is allowed to run their store autonomously. This decentralization allows managers to make decisions about various aspects of store operations, such as promoting products, staff appointments, handling customer complaints, etc. The emphasis on local knowledge and circumstances enables effective decision-making at the store level. Decentralization is known for empowering local managers, improving customer service, and increasing job satisfaction.