12th Class Business Studies Organising Question Bank Passage Bassed Questions

  • question_answer
    Direction: Q. 1 to 4
    Read the given passages and answer the questions that follow.
    Telecom has diversified itselfinto several product lines. Telecommunications, engineering, financial services. Each subsidiary is self-sufficient with their own administrative functions, propagating the belief that people can assume the responsibility for the effective implementation of their decisions and should be given autonomy. This has reduced the need for direct supervision by suppliers, has promoted flexibility, initiative and faster decision-making. The orders of customers are never delayed, as a result of good policy decisions of top management. The philosophy of the top management is to provide greater autonomy to the lower levels of management.
    Identify the philosophy of the top management highlighted in the above case.

    A) Centralisation

    B) Decentralisation

    C) Delegation

    D) None of these

    Correct Answer: B

    Solution :

    [b] It is the dispersal of authority throughout all levels of the organisation


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