Question

Decentralisation refers to:

• A. Retention of authority at top level
• B. Delegation of authority throughout all levels
• C. Complete absence of authority
• D. Transfer of responsibility without authority

Hint:

Centralisation = Authority concentrated at top.
Decentralisation = Authority shared at lower levels.

Answer 1

The Correct Option is B

Concept: Decentralisation means systematic delegation of authority at all levels of management.

Step 1: Understanding decentralisation.
In decentralisation, decision-making powers are shared with lower levels of management.

Step 2: Advantages of decentralisation.
It develops managerial talent, reduces burden on top management, and improves efficiency.

Step 3: Evaluating the options.
(A) Incorrect because retention of authority refers to centralisation.
(B) Correct because decentralisation spreads authority throughout the organisation.
(C) Incorrect because authority always exists in an organisation.
(D) Incorrect because authority and responsibility go together.

Step 4: Final conclusion.
Therefore: \[ \boxed{\text{(B) Delegation of authority throughout all levels}} \]