Decentralization in an organization involves:

Decentralization in an organization refers to the process of transferring decision-making authority from higher levels of management to lower levels. This results in empowering local managers and employees to make decisions that are often more relevant to their specific areas of responsibility. It enhances flexibility, allows for quicker responses to local market conditions, and encourages innovation by giving individuals closer to the operational level more authority to act.

By shifting decision-making to lower levels of management, companies can benefit from diverse perspectives and localized knowledge that frontline employees possess. This leads to better-informed decisions that align closely with customer needs and operational realities. In a decentralized structure, managers at lower levels are not just executing directives from above; they are active participants in the decision-making process, which can increase job satisfaction and motivation.

The other choices reflect characteristics that are contrary to the concept of decentralization. For example, centralized decision-making structures are focused on retaining authority at the top level, which is the opposite of decentralization. While giving every employee equal decision-making power might seem beneficial, it is impractical in most organizational settings where roles and responsibilities need to be clearly defined. Lastly, reducing the number of managerial layers pertains more to organizational structure than to the distribution of decision-making authority, which is central to the idea of