Question : Statement 1: Decentralization enhances employee motivation and job satisfaction.
Statement 2: It allows decision-making authority to be concentrated at the top management level.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Correct Answer: Statement 1 is true, and Statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.
Statement 1is true. Decentralization involves delegating decision-making authority to lower levels of the organization, allowing employees to have more autonomy and involvement in decision-making. This can lead to increased motivation and job satisfaction among employees as they feel empowered and valued within the organization.
Statement 2 is false. Decentralization involves dispersing decision-making authority to lower levels of the organization, reducing the concentration of decision-making power at the top management level.
