Question : Assertion: Decentralization can result in conflicts among different departments.
Reason: Decentralization empowers lower-level managers to make independent decisions.
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. Decentralization involves the delegation of decision-making authority to lower-level managers or departments. When different departments have the power to make independent decisions, conflicts can arise due to differing priorities, goals, or perspectives.
The reason is the correct explanation for the assertion. Decentralization does indeed empower lower-level managers to make decisions independently within their designated domains. This empowerment can lead to conflicts among departments as they exercise their decision-making authority, potentially resulting in disagreements or clashes over strategies, resource allocation, or other organizational matters.
