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Business Studies · 2023 · 6 marks
CBSE 2023 · Region 3 · Set 3 · Q31
(a) What is meant by ‘Decentralisation’? State any four points that highlight the importance of decentralisation.
(a)
What is meant by ‘Decentralisation’? State any
four points that highlight the importance of
decentralisation.
OR
(b)
What is meant by ‘Delegation’? State any four
points that highlight the importance of Delegation.
Marking-scheme solution
Decentralisation refers to delegation of authority
throughout all the levels of the organisation such that
decision making authority is placed nearest to the points
of action.
Or
Decentralisation refers to systematic delegation of
authority through all the levels of management and in all
the departments except that which can be exercised only
at central points.
Importance of Decentralisation :
(i)
Decentralisation develops initiative among
subordinates as lower managerial levels are given
freedom to take their own decisions.
(ii)
It develops managerial talent for the future as it gives
the subordinates a chance to prove their abilities.
(iii)
It facilitates quick decision making since decisions
are taken at levels which are nearest to the points of
action.
(iv)
It provides relief to top management as it
diminishes the amount of direct supervision exercised
by a superior over the activities of a subordinate.
(v)
It facilitates growth as due to increased productivity
levels, the organisation is able to generate more
returns which can be used for expansion purposes.
(vi)
It facilitates better control as it makes it possible to
evaluate performance at each level and hold
departments accountable for their results.
What is meant by ‘Delegation’? State any four
points that highlight the importance of Delegation.
Delegation refers to the downward transfer of
authority from a superior to a subordinate.
or
Delegation is the transfer of authority from superior
to subordinate, entrustment of responsibility and creation
of accountability for performance.
Importance of Delegation of Authority :
(i)
It facilitates effective management by giving the
managers the freedom from doing routine work
and providing with opportunities to excel in new
areas.
(ii)
It empowers the employees by providing them
with the chance to use their skills and develop
themselves for higher positions.
(iii)
It builds the self- esteem of an employee and
motivates him to improve hie performance further.
(iv)
It facilitates growth of an organisation by
providing a ready workforce to take up leading
positions in new ventures.
(v)
It establishes superior-subordinate relationships,
which are the basis of hierarchy of management.
(vi)
It brings clarity in reporting relationships helps in
maintaining better coordination amongst the
departments, levels and functions of management.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.