Question

Decentralisation refers to:

• A. Retention of authority at top level
• B. Delegation of authority throughout all levels
• C. Complete absence of authority
• D. Transfer of responsibility without authority

Hint:

Decentralisation is easiest to understand by first fixing what the opposite idea, all authority staying at the top, means, and then flipping it around. Before choosing an option, check whether it secretly describes that opposite idea, a total absence of authority, or authority separated from responsibility, since each wrong option breaks the definition in exactly one of these ways. The safest word to hold onto is spread, since decentralisation is always about authority spreading downward, not staying, vanishing, or existing without responsibility.

Answer 1

The Correct Option is B

Concept: Decentralisation means systematic delegation of authority at all levels of management.

Step 1: Understanding decentralisation.
In decentralisation, decision-making powers are shared with lower levels of management.

Step 2: Advantages of decentralisation.
It develops managerial talent, reduces burden on top management, and improves efficiency.

Step 3: Evaluating the options.
(A) Incorrect because retention of authority refers to centralisation.
(B) Correct because decentralisation spreads authority throughout the organisation.
(C) Incorrect because authority always exists in an organisation.
(D) Incorrect because authority and responsibility go together.

Step 4: Final conclusion.
Therefore: \[ \boxed{\text{(B) Delegation of authority throughout all levels}} \]

Answer 2

Concept:

• Centralisation and decentralisation are opposite ends of the same idea, how authority is spread inside an organisation.
• Defining decentralisation by first fixing what centralisation means makes the correct option easier to spot, since three of the four options are really describing centralisation, no authority at all, or a broken link between authority and responsibility.

Step 1: Fix the meaning of centralisation first.
Centralisation means all major decision making power stays with the top level of management. Lower levels simply carry out orders and have very little say in decisions.

Step 2: Flip the definition to get decentralisation.
Decentralisation is the opposite of centralisation. Instead of authority staying only at the top, it is spread and given out to managers at middle and lower levels too, so that decisions can be made closer to where the work actually happens.

Step 3: Test each option against this flipped definition.
Retention of authority at the top level is the definition of centralisation, the opposite of what is asked, so it is wrong. Complete absence of authority would mean no one can make decisions at all, which is not what decentralisation means, so it is wrong. Giving responsibility without authority breaks a basic rule of management, since a person cannot be held responsible for a task they have no power to act on, so it is wrong too. Only delegation of authority throughout all levels matches the flipped definition from Step 2.

Final Answer: Delegation of authority throughout all levels