Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

The concentration of decision-making authority is called..................

Options:

Centralisation

Decentralisation

Ordination

Coordination

Correct Answer:

Centralisation

Explanation:

The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.”