Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

The dispersal of decision-making authority among more than one person is known as...............

Options:

Centralisation

Coordination

Decentralisation

Ordination

Correct Answer:

Decentralisation

Explanation:

The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.”