The business of Alpha-Beta-Gama Ltd. is on a large scale. Smt. Rukmani is the CEO of the company. She directs the Marketing Manager that he can take decisions to spend upto र 1 lakh in order to improve the performance of his division. For example, if the Marketing Manager wishes to run an advertising campaign within the limit of र 1 lakh, then this decision can be taken without the consent of the CEO. This authority is not delegated to the remaining Departmental Heads. After the umpteen times insistence of other departmental managers, they are provided with this authority. After some days, another decision was taken with which authority was further delegated by Departmental Managers to their supervisiors/subordinates.

(i) What would you call the authority given to the Marketing Manager to take decisions upto र 1 lakh?

(ii) What does the change introduced in the organisation with the delegation of authority to all the Departmental Managers signify?

(iii) The filtration of authority to the level of Supervisors — what does this situation indicate?

A.

(i) This situation will be called delegation of authority.

(ii) This situation will be called decentralisation.

(iii) This situation signifies expansion of decentralisation.