Select why an organisation would choose to be Decentralised?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → It develops managerial talent for future.
Decentralisation means passing decision-making authority down to the lower levels of management.
Option (1) It develops managerial talent for future. — Correct. Lower-level managers get to take decisions on their own and prove their abilities. This builds a reservoir of trained managers who can be promoted to higher posts.
Option (2) It lowers the morale and confidence amongst the subordinates — Incorrect. The effect is the opposite. Being trusted with decisions makes subordinates more confident and more independent.
Option (3) It delays decision-making. — Incorrect. The effect is the opposite. Decisions are taken close to where the action is, without waiting for approval from the top, so they are quicker.
Option (4) It puts pressure on the top management. — Incorrect. The effect is the opposite. Routine decisions go to the lower levels, which relieves the top management to focus on important policy matters.
NCERT (2026-27 Edition): “(ii) Develops managerial talent for the future: Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation but equally important is the experience gained by handling assignments independently. Decentralisation gives them a chance to prove their abilities and creates a reservoir of qualified manpower who can be considered to fill up more challenging positions through promotions. …” |