Question

All of the following are advantages of decentralization except:

Multiple Choice

• delegation of day-to-day problem solving to lower-level managers allows top management to concentrate on bigger issues, such as overall strategy.

• layers of decision making and approvals are eliminated so that an organization can respond more quickly to customers and to changes in the operating environment.

• decentralization empowers lower-level managers to make decisions in such a way that improves their motivation and job satisfaction.

• lower-level managers are able to make their own decisions without fully understanding the big picture.

Answer 1

Solution : Option D is the correct answer.

The low level managers are able to make their own decisions without fully understanding the big picture is not an advantage in the above question. It is not an advantage according to the concept of decentralisation.

Where as remaining options A, B, C are true about advantages of decentralisation and those statements are correct in nature.

Conclusion: From the above question Option D satisfies given requirement in the question and remaining OPTIONS - A, B, C did not satisfy the given requirements and they are INCORRECT.