Companies with a high degree of employee involvement and empowerment follow the formal theory of authority.

Question

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Companies with a high degree of employee involvement and empowerment follow the informal theory of authority, where employees are given more autonomy and decision-making power in the organization. The formal theory of authority is based on hierarchical, top-down decision-making, which is not conducive to employee empowerment.

Companies with a High Degree of Employee Involvement and Empowerment