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National Vritech Ltd. has grown in size. To cope up with the situation CEO delegates some of his authority to the General Manager. The General Manager, who also felt overburdened and with the approval of CEO, disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above
- a)Decentralisation
- b)Centralisation
- c)Informal organisation
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
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National Vritech Ltd. has grown in size. To cope up with the situation...
Decentralisation is the concept of management discussed above.
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National Vritech Ltd. has grown in size. To cope up with the situation...
Correct answer is Option 'a'. Decentralisation means evenly distribution of authority and powers at every level of management. Here in the above question this concept has been followed nicely by giving or sharing authority with other important levels of management. Due to this concept, employees get motivated to work more efficiently and effectively .
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National Vritech Ltd. has grown in size. To cope up with the situation...
Concept of Management: Decentralisation
Decentralisation is a concept of management where the decision-making authority is dispersed throughout the organization rather than being concentrated at the top level. In the given scenario, National Vritech Ltd. has experienced growth in size, which has led to the CEO feeling overwhelmed with the increased responsibilities. To address this issue, the CEO delegates some of his authority to the General Manager.
Delegation of Authority by CEO
The CEO recognizes the need to distribute some of his decision-making authority to the General Manager to alleviate his own workload. This delegation of authority allows the General Manager to make decisions and take actions within specified limits without having to consult the CEO for every single decision. This transfer of authority from the CEO to the General Manager represents the first step towards decentralisation.
Dispersal of Authority by General Manager
However, the General Manager also feels overburdened with the increased responsibilities and seeks the approval of the CEO to further disperse some of his authority to various levels throughout the organization. This means that the General Manager delegates decision-making authority to lower levels of management and employees, allowing them to make decisions and take actions within their respective areas of responsibility.
Benefits of Decentralisation
1. Increased Efficiency: Decentralisation allows decisions to be made at the appropriate level, leading to quicker decision-making and greater operational efficiency.
2. Employee Empowerment: By delegating authority, employees are empowered to make decisions and take ownership of their work, leading to increased motivation and job satisfaction.
3. Flexibility and Adaptability: Decentralisation enables the organization to be more flexible and adaptable to changing business environments, as decision-making is not solely dependent on top-level management.
4. Development of Managers: Decentralisation provides opportunities for lower-level managers to develop their decision-making and leadership skills, which prepares them for higher-level positions in the future.
5. Better Customer Service: Decentralisation allows decisions to be made closer to the customer, leading to improved customer service and satisfaction.
Conclusion
In conclusion, the concept of management discussed in the given scenario is decentralisation. The CEO delegates authority to the General Manager, who further disperses authority to various levels throughout the organization. This decentralised decision-making structure brings several benefits to the organization, including increased efficiency, employee empowerment, flexibility, and better customer service.
Decentralisation is a concept of management where the decision-making authority is dispersed throughout the organization rather than being concentrated at the top level. In the given scenario, National Vritech Ltd. has experienced growth in size, which has led to the CEO feeling overwhelmed with the increased responsibilities. To address this issue, the CEO delegates some of his authority to the General Manager.
Delegation of Authority by CEO
The CEO recognizes the need to distribute some of his decision-making authority to the General Manager to alleviate his own workload. This delegation of authority allows the General Manager to make decisions and take actions within specified limits without having to consult the CEO for every single decision. This transfer of authority from the CEO to the General Manager represents the first step towards decentralisation.
Dispersal of Authority by General Manager
However, the General Manager also feels overburdened with the increased responsibilities and seeks the approval of the CEO to further disperse some of his authority to various levels throughout the organization. This means that the General Manager delegates decision-making authority to lower levels of management and employees, allowing them to make decisions and take actions within their respective areas of responsibility.
Benefits of Decentralisation
1. Increased Efficiency: Decentralisation allows decisions to be made at the appropriate level, leading to quicker decision-making and greater operational efficiency.
2. Employee Empowerment: By delegating authority, employees are empowered to make decisions and take ownership of their work, leading to increased motivation and job satisfaction.
3. Flexibility and Adaptability: Decentralisation enables the organization to be more flexible and adaptable to changing business environments, as decision-making is not solely dependent on top-level management.
4. Development of Managers: Decentralisation provides opportunities for lower-level managers to develop their decision-making and leadership skills, which prepares them for higher-level positions in the future.
5. Better Customer Service: Decentralisation allows decisions to be made closer to the customer, leading to improved customer service and satisfaction.
Conclusion
In conclusion, the concept of management discussed in the given scenario is decentralisation. The CEO delegates authority to the General Manager, who further disperses authority to various levels throughout the organization. This decentralised decision-making structure brings several benefits to the organization, including increased efficiency, employee empowerment, flexibility, and better customer service.
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National Vritech Ltd. has grown in size. To cope up with the situation CEO delegates some of his authority to the General Manager. The General Manager, who also felt overburdened and with the approval of CEO, disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed abovea)Decentralisationb)Centralisationc)Informal organisationd)None of theseCorrect answer is option 'A'. Can you explain this answer?
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National Vritech Ltd. has grown in size. To cope up with the situation CEO delegates some of his authority to the General Manager. The General Manager, who also felt overburdened and with the approval of CEO, disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed abovea)Decentralisationb)Centralisationc)Informal organisationd)None of theseCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about National Vritech Ltd. has grown in size. To cope up with the situation CEO delegates some of his authority to the General Manager. The General Manager, who also felt overburdened and with the approval of CEO, disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed abovea)Decentralisationb)Centralisationc)Informal organisationd)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for National Vritech Ltd. has grown in size. To cope up with the situation CEO delegates some of his authority to the General Manager. The General Manager, who also felt overburdened and with the approval of CEO, disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed abovea)Decentralisationb)Centralisationc)Informal organisationd)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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