Decentralisation gives relief to top management. It leaves the top management with more time, which they can devote to ______.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → important policy decisions
Option (1) personal supervision of the subordinates — Incorrect. Under decentralisation, subordinates get the freedom to act and decide within set limits. So direct supervision becomes less, and personal supervision is replaced by other forms of control such as return on investment.
Option (2) important policy decisions — Correct. Lower levels now take the operational decisions. The top management is freed from operational decisions and can give its time to important policy decisions.
Option (3) routine operational decisions — Incorrect. These are the very decisions that are passed down to lower levels. The time is saved because the top no longer takes them.
Option (4) checking the decisions of lower levels — Incorrect. Decentralisation is greatest when checking of lower-level decisions is least. So the free time is not meant for checking those decisions.
NCERT (2026-27 Edition): “(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. In fact decentralisation is greatest when checking required on decisions taken by lower levels of management is least.” |