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Question : Statement 1: Decentralization enhances employee motivation and job satisfaction.

Statement 2: It allows decision-making authority to be concentrated at the top management level.

 

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.


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

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. Decentralization involves distributing decision-making authority across various levels of the organization. When employees have the ability to participate in decision-making and have a say in matters that affect their work, it can enhance their motivation and job satisfaction.

Statement 2 is false. Decentralization, by definition, involves dispersing decision-making authority to lower levels in the organization. It moves away from a concentration of decision-making power at the top management level and allows decision-making to occur at different levels within the organization.

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