Advertisements
Advertisements
Question
The top management of Shivam Industries has always believed in the ideas and suggestions of its employees. It has systematically dispersed decision-making authority at all the lower levels. As a result, productivity has increased and customers got prompt deliveries against their order. Identify the concept used by Shivam Industries in this case:
Options
Divisional Structure
Decentralisation of authority
Delegation of authority
Functional Structure
Advertisements
Solution
Decentralisation of authority
Explanation:
Decentralisation refers to the systematic delegation of decision-making authority to lower levels of management. In Shivam Industries, authority has been dispersed across all levels, enabling quicker decisions and improved customer service—clear signs of decentralisation of authority.
