Question

Consider the following:

1. Delegation and decentralization are closely related
2. Delegation and decentralization both are important
3. Delegation is meant for large organization
4. Decentralization is incomplete without centralization of these statements

Options

• (i) and (ii) are correct

• (ii) and (iii) are correct

• (i) and (iv) are correct

• (i), (iii) and (iv) are correct

Answer 1

(i) and (ii) are correct

Explanation:

1. True: Both involve transfer of authority and responsibility. Delegation is the foundation of decentralization, though decentralization is broader and more formal.
2. True: Both are essential for effective management, especially in large organizations, to improve decision-making, efficiency, and accountability.
3. False: Delegation is essential in all organizations, regardless of size. Even small organizations require delegation to divide work and responsibilities.
4. False: While centralization and decentralization need to be balanced, decentralization can exist without strict centralization. Saying it is “incomplete” is misleading.