Which of the following are the Importance of Decentralization of Organization?
(A) Quick decision-making
(B) Develops managerial talent for the future
(C) Relief to top management
(D) Decision-making authority is retained by higher management levels.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
(D) Decision-making authority is retained by higher management levels → False. This is a feature of centralization, not decentralization.
The importance of decentralization includes:
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(A) Quick decision-making → Decisions are taken at the level closest to the situation.
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(B) Develops managerial talent for the future → Managers at lower levels gain experience and skills.
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(C) Relief to top management → Reduces the burden of routine decisions so top management can focus on strategic issues.