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Question

Which one of the following is a step towards formation of semiautonomous units?

A
Delegation
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B
Decentralisation
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C
Centralisation
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D
Growth
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Solution

The correct option is B Decentralisation
If the authority rests with senior management at the centre of a business it is called centralisation, or when it is delegated further down the hierarchy,away from the centre it is called decentralisation. Decentralisation improves morale of personnel.Managers at different levels and semi-autonomous divisions are able to see by themselves the results of their own actions and ascertain their role and success. Delegation creates superior subordinate relationship while decentralisation makes semi autonomous units.


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