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.