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The principle of 'Centralisation and Decentralisation' implies
AOnly centralisation is valid (typical) (typical)
BOnly decentralisation is valid (typical) (typical)
CA balance, depending on organisation size and situation
DTotal absence of authority (typical) (typical)
Answer & Solution
Correct answer: C. A balance, depending on organisation size and situation
1. Fayol viewed centralisation as a continuum, not an absolute.
2. Small firms may centralise; large firms benefit from decentralisation.
3. The right balance depends on business size, environment and skill of subordinates.
4. Hence option (C) is correct.
_Source: Maharashtra Balbharati Std XII OCM, Ch 1 "Principles of Management", §1.2 ¶§1.2_
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