Question : Case Study 82: XYZ Corporation
XYZ Corporation is considering implementing delegation of authority to enhance its organizational efficiency. What is the primary benefit of delegation?
Option 1: Increased centralization of decision-making
Option 2: Reduction in employee empowerment
Option 3: Streamlined communication channels
Option 4: Improved efficiency and decision-making
Correct Answer: Improved efficiency and decision-making
Solution : The correct answer is (d) Improved efficiency and decision-making
Delegation involves assigning appropriate tasks and responsibilities to employees based on their skills and abilities, empowering them to make decisions within their areas of responsibility. This delegation of authority helps in distributing the workload effectively and promotes efficient decision-making at various levels within the organization. It enhances the overall efficiency of the organization by enabling decisions to be made by those closest to the relevant information and tasks, improving response time and agility. It does not aim to increase centralization, reduce employee empowerment, or streamline communication channels, but rather to enhance efficiency and decision-making processes.
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