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Principles of Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesPrinciples of Management3 Marks
Question
What is meant by principle of centralisation?
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Answer

Centralisation means concentration of authority at the top level of management. While its dispersal among many levels is called decentralsation. Fayol suggests that an appropriate balance should be maintained between centralisation and decentralisation. The degree of centralisation and decentralisation will depend upon several factors such as size of the organisation, competence of top managers, ability of subordinates, etc.

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