Question : Assertion: Centralization of decision-making can lead to bureaucratic delays.
Reason: Centralization allows quick decision-making by top-level managers.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion is true. Centralization of decision-making can indeed lead to bureaucratic delays. In a centralized decision-making structure, decisions need approval or input from a limited number of top-level managers. This can slow down the decision-making process, especially for routine or minor decisions.
The reason is the correct explanation for the assertion. While centralization allows quick decision-making by top-level managers for significant or critical decisions, it can also result in delays due to the need for managerial approval, hierarchy, and formal processes for decision-making. Therefore, the reason explains how centralization can have both aspects – enabling quick decision-making in some cases but causing delays in others due to bureaucratic processes.
