Question

Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative from those given below :
Assertion (A) : Decentralization is an optional policy decision.
Reason (R) : It is done at the discretion of the top management.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is \textbf{not} the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

Decentralization is optional and strategic; it is implemented based on management’s willingness to delegate.

Answer 1

The Correct Option is A

Decentralization refers to systematic delegation of decision-making authority from top management to lower levels. It is not mandatory; it is a policy decision made by the organization depending on its structure, culture, and business needs. This policy decision is made at the discretion of top-level management, who decide how much authority to delegate and to whom. Hence, both statements are correct, and the reason explains the assertion.
textbf{Final Answer:} (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).