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A company introduces decentralisation in a few branches, studies the results, and then modifies its policy. Which nature of management principles does this illustrate?

Answer and explanation

Correct answer: Based on observation and experimentation

Management principles develop through experience, observation, and experimentation. Trying decentralisation in selected branches, studying its outcomes, and revising the policy shows this empirical basis. They are not rigid legal commands, so option C is incorrect. Exam tip: Words such as ‘trial’, ‘study of results’, and ‘revision based on experience’ usually indicate observation and experimentation.

Related tags

Management PrinciplesNature Of ManagementObservation And ExperimentationBusiness Studies Class 12DecentralisationNature Of Management PrinciplesPrinciples Of ManagementBusiness Studies

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