"Systematic effort to delegate to the lowest level of authority except that which can be exercised at central points".

Identify the concept of management.

Decentralisation

The correct answer is option 2- Decentralisation.

Decentralisation is reflected in the given statement.

Decentralisation refers to systematic effort to delegate to the lowest level all authority except that which can be exercised at central points- Louis Allen.

Decentralisation explains the manner in which decision making responsibilities are divided among hierarchical levels. Put simply, decentralisation refers to delegation of authority throughout all the levels of the organisation. Decision making authority is shared with lower levels and is consequently placed nearest to the points of action. In other words decision making authority is pushed down the chain of command. When decisions taken by the lower levels are numerous as well as important an organisation can be regarded as greatly decentralised.

OTHER OPTIONS

• Delegation is the transfer of authority from superior to subordinate. Delegation is a compulsory act because no individual can perform all tasks on his own.

• Centralisation- An organisation is centralised when decision making authority is retained by higher management levels whereas it is decentralised when such authority is delegated. Complete centralisation would imply concentration of all decision making functions at the apex of the management hierarchy.

• Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain which links the various job positions and levels of an organisation. Authority also refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it.