Which situation best illustrates decentralisation?
Correct answer: C. Branch managers make approved local operating decisions
- A. All departments follow decisions made at headquarters
- B. Only the chief executive approves routine purchases
- C. Branch managers make approved local operating decisions
- D. Supervisors refer every issue to the board
Explanation
Decentralisation places some decision authority closer to the point where work is performed. The other situations concentrate routine decisions at higher organisational levels.
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Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.
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