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 1 is true. Decentralization involves distributing decision-making authority across various levels of the organization. When employees have the ability to participate in decision-making and have a say in matters that affect their work, it can enhance their motivation and job satisfaction.
Statement 2 is false. Decentralization, by definition, involves dispersing decision-making authority to lower levels in the organization. It moves away from a concentration of decision-making power at the top management level and allows decision-making to occur at different levels within the organization.
