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.

Which of the following is true in regard to decentralization?

1. Decentralization increases the dependency and decreases the confidence of the subordinates. 
2. As, every decision is made by the top management, the flow of information is very slow making it a long process.
3. It diminishes the amount of direct supervision exercised by a superior over the activities of a subordinates.
4. It makes it possible to evaluate performance at each level.

3 and 4

The correct answer is option 3- 3 and 4.

Following is the importance of "Decentralization":

1. Develops initiative among subordinates: Decentralization helps to promote self-reliance and confidence amongst the subordinates. This is because when lower managerial levels are given freedom to take their own decisions they learn to depend on their own judgment.
2. Develops managerial talent: Formal training plays an important part in equipping subordinates with skills that help them rise in the organization but equally important is the experience gained by handling assignments independently.
3. Quick decision making: In a decentralized organization, since decisions are taken at levels which are nearest to the points of action and there is no requirement for approval from many levels, the process is much faster. 
4. Relief to top management: Decentralization diminishes the amount of direct supervision exercised by a superior over the activities of a subordinate because they are given the freedom to act and decide albeit within the limits set by the superior.
5. Facilitates growth: Decentralization awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and fosters a sense of competition amongst the departments.
6. Better control: Decentralization makes it possible to evaluate performance at each level and the departments can be individually held accountable for their results.