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Question

At Alpha Ltd. all expense bills of employees are processed by general manager himself. He feels quite overburdened. He decided to delegate this work to deputy general manager. But after sometime the deputy general manager, disperses this authority to various levels throughout the organisation. Now all bills for travelling are processed through respective department supervisor.
Name the concept of management highlighted in above case before and after delegating the authority

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Solution

Before delegation of authority- centralization-
The concentration of control of an activity or organization under a single authority.
After delegating the authority- decentralization-
the movement of departments of a large organization away from a single administrative center to other locations.



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