Step 1: Question Analysis.
The query seeks a philosophical stance supporting the distribution of authority, predicated on the belief in individual competence.
Step 2: Option Examination.
- Span of Management: This concept relates to the number of subordinates a manager can effectively oversee, not directly to authority dispersal.
- Decentralisation: This is the delegation of decision-making authority to lower organizational levels, embodying the confidence in people's competence and resourcefulness.
- Centralisation: This concentrates decision-making power at the apex of an organization, opposing the selective dispersal of authority.
- Democratic Leadership Style: While involving participation, this style does not specifically address authority dispersion as directly as decentralisation.
Step 3: Determination.
Decentralisation is the appropriate response, as it entails the selective distribution of authority, acknowledging the capabilities of individuals at various tiers.
Final Determination: [\boxed{\text{The correct answer is (2) Decentralisation.}}]