Question : Assertion: Decentralization of authority enhances the decision-making process.
Reason: It empowers lower-level managers to make decisions independently.
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 of authority often enhances the decision-making process in an organization. It distributes decision-making power across various levels, allowing for quicker and more tailored responses to specific issues and opportunities.
The reason is the correct explanation for the assertion. Decentralization indeed empowers lower-level managers by granting them the authority to make decisions independently within their respective domains. This empowerment contributes to an improved decision-making process, as decisions can be made more efficiently at different levels of the organization.
