Question

Which of the following is an advantage of decentralization? Multiple Choice Decentralization motivates managers to improve...

Which of the following is an advantage of decentralization?

Multiple Choice

  • Decentralization motivates managers to improve productivity.

  • Authority and responsibility is not clear.

  • None of these.

  • Decentralization encourages lower-level managers to focus on strategic decisions.

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Answer #1

Decentralization refers to the delegation of the power and authority of decision making to the lower level of management, it reduces the burden of top management so it can perform other important work.

Decentralization facilitates the increased motivation and timely decisions, the process of decentralization motivates the employees to give their best performance as they have the power and authority which makes them accountable and responsible towards the work and all these facts generally results in improved productivity for the firm.

Hence option (1) Decentralization motivates managers to improve productivity is the correct answer.

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