QUESTION 3: Mustafa Enterprises is a formally organized, fast-growing business organization, the HR department wants to go for a unique practice of controlling employee performance. The management decided to measure the performance of every employee through a balanced Scorecard. Employees were given the freedom to take their work-related decisions. Employees of the company feel motivated with the power to take decisions on their own. This new management approach made the evaluation of employees and departments easier. Further, it was much easy to control the performance of employees by diagnosing deviations from the predetermined performance outcomes Since the decisions were taken by the employees, the speed of decision making increased drastically. On the other hand, the top management of the organization now had more free time to focus on other areas. The changes in the working environment were quite visible. In a review meeting, the top management of the company observed the following developments in the organization: 1. Mutual relationships among employees were clearly stated. 2. Responsibilities of all the organizational members were specified and communicated to them. 3. Communication channels are formally established to avoid any ambiguity. 4. Work performance has increased (10 Marks) Answer the following: 3.1 What are the benefits of decentralization in the above case? 3.2 Based on the above case describe the characteristics of formal business organizations? 3.3 List industries in which such practices of decentralization can be used effectively