Read the following passage and answer the following questions.

Garg Chemist has branches all over the country. Recently, they changed how they make decisions. The lower-level managers can now make decisions on their own and trust their judgments. This change has really helped the company succeed. Employees are now handling projects on their own, gaining valuable experience that can help them move up in the company to more important roles in the future. The company believes that delegation is essential. Even before they started decentralizing, the company was doing well. Managers knew that by properly giving tasks to others, they could focus on more important things. This is how the company grew. Delegating also helped establish good relationships between managers and their teams, making reporting relationships clear. The company focuses on specialized products. In the future, managers will have plenty of opportunities to show their skills and grow in their roles.

'The lower-level managers can now make decisions on their own and trust their judgments.

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

Decentralisation

The correct answer is option 1- decentralisation.

When lower level take decision then it is Decentralisation. Delegation of all decision making functions to the lower level of the hierarchy. 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. When decisions taken by the lower levels are numerous as well as important an organisation can be regarded as greatly decentralised.