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The systematic effort to delegate to the lowest level, all authority except that which can be exercised at central points is called:

  1. Decentralisation
  2. Delegation
  3. Centralisation
  4. Departmentalisation

Solution

✅ Correct Option: 1

Option 1 -> Decentralisation involves systematically distributing authority to lower organizational levels while retaining only essential control at the top.

Option 2 -> Delegation is the assignment of specific tasks and authority from superior to subordinate, but not necessarily a systematic organizational-wide effort.

Option 3 -> Centralisation is the opposite concept where authority is concentrated at the top management levels rather than distributed downward.

Option 4 -> Departmentalisation refers to grouping activities and resources into departments based on functions, products, or geography, not about authority distribution.


Hence, Option 1 (Decentralisation) -> The definition describes the systematic distribution of authority to the lowest possible levels while keeping only necessary authority at central points, which is the precise meaning of decentralisation as an organizational principle -> correct

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