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Question
In 'Delight Ice Creams Ltd.', decision making authority is concentrated at the top level and no authority has been delegated among the subordinates. On the other hand, in "Tasty Ice Creams Ltd.", a big organization as compared to 'Delight Ice Creams Ltd.', decision making authority is always delegated among more than one person.
Identify the principle of management discussed above.
Options
stability of personnel
centralisation and decentralization
authority and responsibility
scalar chain
Solution
centralisation and decentralization
Explanation:
Centralization refers to the concentration of decision-making power, whereas decentralization refers to its distribution among multiple individuals. The conditions under which the business operates will determine the extent of centralization. Larger organizations tend to be more decentralized than smaller ones.
