Question : Assertion: Decentralization enhances the speed of decision-making.
Reason: It involves distributing decision-making authority to various levels of the organization.
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 delegating decision-making authority to lower levels of the organization, allowing decisions to be made closer to where the relevant information and expertise are. This can result in faster decision-making because decisions can be made without having to go through a lengthy hierarchy or approval process.
The reason is the correct explanation for the assertion. By distributing decision-making authority to various levels of the organization, decentralization enables quicker decision-making. Decision-makers at lower levels can respond faster to local or specific needs without being delayed by the levels above them in the hierarchy.
