Which of the following is not an importance of Decentralisation?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Placement of employees
Option (1) Develops managerial talent for the future — An importance of decentralisation (Incorrect). Decentralisation means passing decision-making authority down to the lower levels of the organisation. Managers at those levels get a chance to take decisions and learn from them. So the organisation builds a pool of trained managers who can fill higher posts later.
Option (2) Quick decision making — An importance of decentralisation (Incorrect). Decisions are taken close to the place where the work is done. They do not have to travel up and down the chain of command, so they are taken faster.
Option (3) Placement of employees — Not an importance of decentralisation (Correct). Placement is a step in the staffing process. It means putting a selected person in the job for which he has been chosen. It has nothing to do with how far authority is spread in the organisation.
Option (4) Develops initiative among subordinates — An importance of decentralisation (Incorrect). When subordinates are allowed to take decisions, they learn to trust their own judgement. This builds self-reliance and initiative in them.
NCERT (2026-27 Edition): “Importance … (i) Develops initiative among subordinates: Decentralisation helps to promote self-reliance and confidence amongst the subordinates. This is because when lower managerial levels are given freedom to take their own decisions they learn to depend on their own judgment. …” “(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. …” “(iii) Quick decision making: … In a decentralised organisation, however ,since decisions are taken at levels which are nearest to the points of action and there is no requirement for approval from many levels, the process is much faster. …”
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