Question

Panchayat in our country have been given powers to decide and spend funds granted to them by the government for the welfare of villagers. Identify the management principle highlighted in the given statement

Answer 1

Answer:

decentralisation

Explanation:

Centralization means concentration of authority at the top level. In other words, centralization is a situation in which top management retains most of the decision making authority.

Decentralization means disposal of decision making authority to all the levels of the organization. In other words, sharing authority downwards is decentralization.

According to Fayol, “Degree of centralization or decentralization depends on no. of factors like size of business, experience of superiors, dependability & ability of subordinates etc.

Anything which increases the role of subordinate is decentralization & anything which decreases it is centralization.

Fayol suggested that absolute centralization or decentralization is not feasible. An organization should strike to achieve a lot between the two.

Answer 2

Centralisation and Decentralisation

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