Decentralization
Definition
Decentralization in the context of designing organizational structures is the distribution of decision-making powers from a central authority to lower levels within an organization. It allows various departments or divisions to have autonomy and make decisions relevant to their specific operations.
Analogy
Think of decentralization like a group project where instead of one person making all the decisions, each member is responsible for making decisions about their part of the project. Just like in a decentralized organization, this approach leverages the unique skills and perspectives of each member, leading to more tailored and effective outcomes.
Related terms
Autonomy: The power to make your own decisions without being directed by others, often given to departments within a decentralized organization.
Hierarchical structure: A system of organizing people within an institution that ranks them in levels of importance, often contrasted with flat or decentralized structures.
Centralization: The concentration of decision-making authority at the upper levels of an organization, opposite to decentralization
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