Question:medium

Read the following statements: Assertion

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Decentralization is a policy decision made by top management, and it is flexible depending on the needs and structure of the organization.
Updated On: Jan 13, 2026
  • and Reason (R). Choose the correct alternative from those given below:}
    Assertion (A): Decentralization is an optional policy decision.
    Reason (R): It is done at the discretion of the top management. }
  • Both Assertion
  • and Reason (R) are true and Reason (R) is the correct explanation of Assertion
  • .
Show Solution

The Correct Option is A

Solution and Explanation

Decentralization is a strategic choice made by senior leadership. The executive team determines whether to implement decentralization within the organization, considering factors such as scale, complexity, and objectives. Assertion (A) is accurate. Reason (R) elaborates on this principle by stating that decentralization is a management decision. Therefore, both statements are true, and Reason (R) provides an explanation for Assertion (A).
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