Question : Assertion: The principle of "Centralization" involves decision-making authority resting with top-level management.
Reason: It leads to quick decision-making and uniformity in policies.
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. The principle of "Centralization" does involve decision-making authority being concentrated at the top levels of management, where key decisions are made by top executives or a small group of individuals.
The reason, however, is incorrect. While centralization can lead to quick decision-making due to a smaller group being involved, it may not always lead to uniformity in policies. In fact, centralization can sometimes hinder uniformity, especially if decision-making is not well-coordinated or if there's a lack of clear communication and direction from the top. The degree to which centralization leads to uniform policies can vary based on how effectively it's implemented within an organization.
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