Distributed Authority

Placing decision making power in the hands of those who are accountable for completing work.

In advanced organizations, decision-making rights are granted to those closest to the problem.  Management trusts the wisdom of team members, believing the staff will act in the best interest of the company and it’s customers. By distributing authority, leaders put power in the hands of those best positioned to find the right solution.  This permission speeds decisions so companies can be nimble and outflank competitors.

Decentralized Organizational Structure

Decentralization is a type of organizational structure in which daily operations and decision-making responsibilities are delegated by top management to middle and lower-level mangers. This frees up top management to focus more on major decisions. For a small business, growth may create the need to decentralize to continue efficient operations. Decentralization offers several advantages, though relinquishing control may be difficult for a business owner accustomed to making all the decisions.

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