Management Notes

Reference Notes for Management

With ______ important decisions are made by middle-level and supervisory-level managers.

With ______, important decisions are made by middle-level and supervisory-level managers.

A. higher-management influence
B. decentralized authority
C. upper authority
D. focused power
E. centralized authority

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The Correct Answer for the given question is option B. decentralized authority

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Decentralized authority is becoming increasingly important in decision making. This is due to the increasing complexity of organizations and the need for middle-level and supervisory-level managers to make decisions that have a significant impact on the organization. Decentralized authority allows these managers to make decisions based on their understanding of the situation and their knowledge of the organization. This type of authority gives these managers more flexibility and independence when making decisions.

Supervisory-level and middle-level managers play an important role in implementing decentralized authority, as they are responsible for making decisions that affect their organizations. In order to make effective decisions under decentralized authority, these managers must have a clear understanding of the organization’s goals and objectives, as well as the resources available to them. Additionally, they must be able to communicate effectively with other members of the organization, both inside and outside of their supervisory chain.

 

Answer Explanation for Question: With ______ important decisions are made by middle-level and supervisory-level managers.

Decentralization

Decentralization refers to the process of delegating authority in an organization to lower level managers. The managers are then responsible for executing the decentralized authority. A decentralized organization, on the other hand, has the authority concentrated in the hands of one or a few individuals. With decentralized authority, lower level managers have greater freedom in taking decisions applicable to their specific areas of responsibility, as long as those decisions are consistent with the organization’s goal and strategy. The top-level management makes the static decisions and policies in this case as well. Coordinating and controlling authority also remains with the top-level managers.

Factors Affecting Decentralization

The factors that determines the degree of decentralization are:

  • Size and scope of operations of an organization
  • Degree of control required
  • Management by exception required or not
  • Nature of the business and the growth
  • Quality of top-level managers
  • Level of diversity in products and services

Implications of Decentralization

The implications of decentralization are as follows:

  • Less burden on top level executives
  • Operations can be coordinated at lower levels
  • Effective control is there, hence quick decisions can be made
  • Increased motivation to work
  • Subordinates get a chance to take decisions independently and learn
  • Greater efficiency and output
  • Lower level mangers get ready for emergencies
  • Maintenance of secrecy
  • Diversification of activities

Lastly,

I hope after going through this post you might have clearly understood the Question: With ______ important decisions are made by middle-level and supervisory-level managers.

Which of the following is not among the ethical and social challenges facing operations managers?

Smirti

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