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CSEET · Business Laws and Management · Functions of Management

Consider these statements on delegation and decentralisation. I: Delegation is a process between a superior and a subordinate, while decentralisation is a systematic policy of dispersing decision-making authority at all levels. II: Under decentralisation, delegation is not needed. Which is correct?

Only statement I is correct. Delegation is an act between a superior and subordinate, whereas decentralisation is an organisation-wide policy of dispersing decision-making. Statement II is wrong because decentralisation depends on delegation to spread authority downward.

  1. ABoth I and II are correct
  2. BOnly I is correctCorrect
  3. COnly II is correct
  4. DNeither I nor II is correct

Explanation

Statement I correctly distinguishes the two ideas: delegation is an act between individuals, decentralisation is an organisation-wide policy. Statement II is wrong because decentralisation is achieved through delegation; without delegation, authority cannot be dispersed.

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