According to Fayol, the concept of decentralisation is needed to :

Balance subordinate involvement with Managers

The correct answer is option (2) : Balance subordinate involvement with Managers

Decentralization is a management concept that involves the distribution of authority, power, and decision-making across various levels in an organization. Instead of concentrating all decision-making power at the top, decentralization delegates some of that authority to lower levels of the organizational hierarchy. This approach empowers employees throughout the organization to participate in decision-making, leading to a more flexible and responsive structure.

(2) Balance subordinate involvement with Managers:

• Decentralization helps strike a balance between the involvement of subordinates and the decision-making authority of managers. This is essential for maintaining a structure that encourages efficient decision-making while also empowering lower-level employees to contribute and participate in the decision-making process.

• While involving subordinates in decision-making is a part of the decentralization concept, it is also necessary to ensure that this participation is balanced with the guidance and supervision of managers, who oversee the overall functioning of the organization. This balance helps maintain efficiency and coherence within the organizational structure.