Decentralization should be applied with caution as ___________.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → It can lead to organisational disintegration if the departments start to operate on their own guidelines which may be contrary to the interest of the organisation.
Option (1) It can lead to organisational disintegration if the departments start to operate on their own guidelines which may be contrary to the interest of the organisation. — Correct. Decentralisation means spreading decision-making authority to the lower levels throughout the organisation. It gives departments freedom. But if each department starts to follow its own guidelines, the parts pull in different directions and the organisation can fall apart. So decentralisation must be balanced with centralisation in major policy decisions.
Option (2) Employees resist it — Incorrect. Employees usually welcome decentralisation. It gives them more authority and a chance to develop their initiative.
Option (3) It puts burden on top management — Incorrect. The opposite is true. Decentralisation takes routine decisions off top management, leaving it free for important matters.
Option (4) It reduces autonomy — Incorrect. Decentralisation increases the autonomy of the lower levels. Centralisation is what reduces it.
NCERT (2026-27 Edition): “Better control: … As a conclusion, it must be noted that in spite of its benefits decentralisation should be applied with caution as it can lead to organisational disintegration if the departments start to operate on their own guidelines which may be contrary to the interest of the organisation. Decentralisation must always be balanced with centralisation in areas of major policy decisions.” |