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.
- ABoth I and II are correct
- BOnly I is correctCorrect
- COnly II is correct
- 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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