Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

'Decision making authority is shared with lower levels and is consequently placed nearest to the points of action'.

Which of the following concept is highlighted in the above statement?

Options:

Delegation

Decentralisation

Centralisation

Coordination

Correct Answer:

Decentralisation

Explanation:

The correct answer is option 2- decentralisation.

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.