Read the following passage and answer the question:

Over the last couple of years, the operation of Zosh limited increased many fold due to sudden boom in the market. It's sales manager. Mr. Rajesh was over burdened and it looks almost impractical for him to handle all the sales related activities and decisions.

He discussed the problem with the top management and selective dispersal of authority to some other people was decided, as many people, who were employed with the company were competent, capable and resourceful. They could assume responsibility for the effective implementation of the decisions. Now Mr. Rajesh would be having more time which he could devote to important policy decisions rather than occupying his time with both policy as well as operational decisions.

Identify the term that indicates retaining of decision making authority by higher management levels.

Centralisation

The correct answer is option (3) : Centralisation

The term that indicates retaining decision-making authority by higher management levels is:

3. Centralization

Centralization refers to the concentration of decision-making authority at higher levels of management within an organization. In a centralized structure, key decisions are made by top management, and lower levels of management have limited autonomy in decision-making.

Certainly, here are explanations for the other terms

1. Formal Organization: Formal organization refers to the structured and officially established framework of an organization, including its hierarchy, roles, responsibilities, and reporting relationships. It is the documented structure that outlines how tasks and functions are organized within the organization. It contrasts with informal organization, which consists of unofficial networks and relationships that exist among employees.

2. Informal Organization: Informal organization is the network of unofficial relationships, interactions, and social connections that develop within an organization. These relationships often exist alongside the formal  organizational structure. Informal organizations can influence communication, collaboration, and the flow of information within the workplace. They are based on personal connections and shared interests.

4. Decentralization: Decentralization is the opposite of centralization. It involves the delegation of decision-making authority to lower levels of the organization. In a decentralized structure, decision-making is distributed among different levels and departments, allowing for more autonomy and  local control. This can lead to faster responses to local issues but may require effective coordination.

These terms are important in understanding the structure. culture, and decision-making processes within organizations. Centralization and decentralization are key considerations in how an organization distributes decision- making authority, while formal and informal organization describe the structured and social aspects of an organization's dynamics.