| Direction: Q. 5 to 8 |
| Read the given passages and answer the questions that follow. |
| A bangle manufacturing company named Exe Limited, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 2001- But after that, new liberalised environment saw entry of many MNCs in the sector. As a result the market share of Exe Limited has declined. The company has followed every centralised business model, with directors and divisional heads making even minor decisions. Before 2001 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. |
A) It should adopt functional structure
B) It should adopt divisional structure
C) It should adopt centralisation
D) It should adopt decentralisation
Correct Answer: D
Solution :
[d] Decentralisation means delegation of decision making function right till the lowest level of the hierarchy.
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