Gujarat BoardEnglish MediumSTD 12 CommerceOCMORGANIZING3 Marks
Question
“On account of decentralization of authority, future managers get generated.”-Explain.
✓
Answer
Top manager cannot perform all important functions of unit such as purchase, sale, production, human resource management, accounting etc.
On his own because it is not possible to have the knowledge of all these functions with him. And if he tries it, all functions will be delayed.
But if the authority to take decisions in respect of these functions is delegated to the functional heads, the benefits of their skills and knowledge can be obtained and effective decisions can be made for all divisional functions.
On the other hand, as the workload of top managers is reduced, they are required to only co-ordinate the divisional functions.
That is why delegation of authority is considered the base for the success of organisation.
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