Question

Neeraj Gupta started a company 'Yo Yo Ltd! with ten employees, to assen
mputer
for the Indian rural market. The company did very well in its initial years. As the product was good and
marketed well, the demand went up. To increase production the company decided to recuit additiona
employees. Neeraj Gupta, who was earlier taking all decisions for the company, had to selectively
disperse the authority. He believed that people are competent, capable and resourceful and can
assume responsibility for effective implementation of their decisions. This paid off and the compan
was not only able to increase its production but also expanded its product range with different features
(a) Identify the concept used by Neeraj Gupta through which he was able to steer his company to
greater heights.
(b) Also explain any three points of importance of this concept.
TCBSE 2015​

Answer 1

Answer:

decentrisation :-> it refers to distribution of authority amongst all level of management.

importance of decentralization :-

1. develops initiative amongst subordinates

2. quick decision making

3. relief to top management