Question : Assertion: The principle of "Centralization" enhances the decision-making authority of top-level management.
Reason: It allows slow and ineffective decision-making in critical situations.
Option 1: Both assertions and reasons are correct, and the reason is the correct explanation of the assertion.
Option 2: Both are correct, but the reason is not the correct explanation.
Option 3: The assertion is correct, the reason is incorrect.
Option 4: The assertion is incorrect, the reason is correct.
Correct Answer: The assertion is correct, the reason is incorrect.
Solution : The correct answer is (c) The assertion is correct, the reason is incorrect.
The assertion is correct. Centralization involves concentrating decision-making authority at the top level of management.
The reason is incorrect. Centralization doesn't inherently mean slow and ineffective decision-making. It's about where the decision-making authority is concentrated, not the speed or effectiveness of decision-making. Effective decision-making depends on various factors beyond centralization, such as organizational culture, processes, and leadership capabilities.
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