..........................is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful.

Decentralisation

The correct answer is option 2- Decentralisation.

Decentralisation is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful.

Decentralisation is much more than a mere transfer of authority to the lower levels of management hierarchy. It is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful. They can assume the responsibility for the effective implementation of their decisions. Thus this philosophy recognises the decision maker’s need for autonomy.

OTHER OPTIONS

• Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a pre requisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. It also satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative.

• Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.

• Organizational diversity refers to the variety of differences among people in an organization. It includes both visible and invisible traits, such as gender, race, age, ethnicity, religion, disability, sexual orientation, education, socioeconomic background, personality, and work style.