The practice of delegating decision-making authority to the lower levels of management in a company is
A) centralization.
B) decentralization.
C) performance evaluation.
D) authorization.
E) hierarchy flattening.

Question

Quizplus · Accepted Answer

Decentralization involves delegating decision-making authority to lower levels of management. This allows for greater flexibility and quicker decision-making, as the lower-level managers are more directly involved in the day-to-day operations and can make decisions more quickly than higher-level executives who may have less knowledge of specific details. Centralization, on the other hand, involves concentrating decision-making authority with upper management, which can lead to slower decision-making and less flexibility. Performance evaluation, authorization, and hierarchy flattening are related concepts but do not specifically relate to the delegation of decision-making authority.

The Practice of Delegating Decision-Making Authority to the Lower Levels