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According to You, What Kind of Organisational Set up is Better – an Autocratic Form of an Organization Where There is Absolute Centralization - Entrepreneurship

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Question

According to you, what kind of organisational set up is better – an autocratic form of an organization where there is absolute centralization of power and the communication from is from top to bottom. Or A democratic form of an organization where power is decentralized and communication from both the ends. Justify? 

Answer in Brief

Solution

In my opinion, the  should be democratic form of organization where power is decentralized and communication from both the ends. This is because of following reasons:
(i) Creativity: This will enhance the creativity as there will be ample freedom of expression in the firm.
(ii) Team work: Team work will be enhanced as there will be democratic set up. There will be more positive interaction between the employees and the management.
(iii) Considerationforothers: Democratic set up ensures consideration for others. This will create more belongingness in the enterprise leading to more better working environment.
(iv) Humanism: Human feeling will be more positively and effectively utilised for the betterment of the enterprise and also for enhancing the productivity.

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Chapter 2: Enterprise Planning - Value Based Questions [Page 90]

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CBSE Entrepreneurship Class 12
Chapter 2 Enterprise Planning
Value Based Questions | Q 6 | Page 90
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