Question : Statement 1: Centralization can lead to bureaucracy and delays in decision-making.
Statement 2: Centralization empowers lower-level employees to make independent decisions.
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. In a centralized structure, decision-making authority is concentrated at the top levels of the organization. This can lead to bureaucracy and delays as decisions need approval from higher-ups, causing a slower decision-making process.
Statement 2 is false. Centralization involves decision-making authority being held at the top levels of the organization, restricting lower-level employees' ability to make independent decisions without seeking approval from higher levels. Lower-level employees typically have limited decision-making authority in a centralized structure.
