The concentration of decision-making authority is called..................
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Centralisation.
The concentration of decision-making authority is called Centralisation.
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.”