Read the passage and answer the following questions.

The McNeil name has been associated with the manufacturing and sale of pharmaceutical products since 1879, when Robert McNeil opened his first retail drug outlet in Pennsylvania. Growing as a producer of prescription pharmaceuticals, McNeil Laboratories, Inc. was incorporated in the U.S. in 1933, and became a member of the Johnson & Johnson family of companies in 1959. McNeil Consumer Healthcare began operations in Canada in an existing administrative Johnson & Johnson facility in Guelph, Ontario in 1980. McNeil Consumer Healthcare (nonprescription pharmaceutical products) in Guelph, Ontario is a member of the Johnson & Johnson family of companies in Canada. An important difference between Johnson & Johnson and most other companies — is the concept of decentralized management. Instead of operating as one large multi-billion-dollar corporation, Johnson & Johnson is operated as 190 smaller companies, each focused on a specific medical or product franchise and/or geographic area, with each affiliate generating multiple options for growth. Through decentralization we combine the advantages of being big with the agility and focus of smaller firms. Decentralization enables each company to stay close to its customer, maintain short lines of communication with customers and employees, and accelerate the development of talent. The Johnson & Johnson - Merck Consumer Pharmaceuticals company also operates from our Woodlawn Road facility in Guelph.

What is the difference between delegation and decentralization?

Delegation is compulsory whereas, decentralization is an optional decision 

The correct answer is option 1- Delegation is compulsory whereas, decentralization is an optional decision.

* Delegation is a compulsory act because no individual can perform all tasks on his own, whereas decentralization is an optional policy decision. It is done at the discretion of the top management.

* Delegation has more control by superiors hence less freedom to take own decisions, whereas decentralization has less control over executives hence greater freedom of action.

* Delegation has a narrow scope as it is limited to superior and his immediate subordinate, whereas decentralization has wide scope as it implies extension of delegation to the lowest level of management.