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Which of the following clearly explains the manner in which decision-making authority is dispersed at hierarchical levels?

Solution

✅ Correct Option: 2

Option 1 -> Communication refers to the exchange of information and messages between individuals or groups in an organization, not the distribution of decision-making authority.

Option 2 -> Decentralisation is the systematic delegation and distribution of decision-making authority from top management to middle and lower levels of the organizational hierarchy.

Option 3 -> Centralisation refers to the concentration of decision-making authority at the top management level, which is the opposite of dispersing authority across levels.

Option 4 -> Coordination involves synchronizing and integrating activities and efforts across departments to achieve organizational goals, not specifically about authority dispersion.


Hence, Option 2: Decentralisation -> Decentralisation explicitly describes how decision-making authority is dispersed, distributed, and delegated across various hierarchical levels in an organization, moving power away from a central point to multiple levels -> correct

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