Question : Assertion: Decentralization improves organizational agility and responsiveness.
Reason: It involves a hierarchical approach to decision-making.
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, but the reason is not the correct explanation of the assertion.
Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
The assertion is true. Decentralization often enhances organizational agility and responsiveness. When decision-making authority is distributed to lower levels of the organization, it allows for quicker decision-making and faster responses to changes and challenges in the external or internal environment.
The reason is not the correct explanation for the assertion. Decentralization involves a flatter approach to decision-making, distributing decision-making authority across different levels of the organization rather than following a hierarchical approach. It's the opposite of a purely hierarchical approach. Thus, the reason does not explain why decentralization improves organizational agility and responsiveness.
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