Which term describes the degree to which decision-making authority is given to lower levels in an organization's hierarchy?

Which term describes the degree to which decision-making authority is given to lower levels in an organization's hierarchy?

• A. Centralization
• B. Collective Bargaining
• C. Decentralization
• D. Dismissal

Answer: (C)

Decentralization is about giving decision-making authority to lower levels in the organizational hierarchy. When authority is decentralized, frontline managers and regional units can make decisions that affect their areas, helping the organization respond more quickly to local needs and empowering employees. This is the best answer because it directly describes how much control is handed down from the top. Centralization would mean keeping most decisions at the top, which is the opposite. Collective bargaining relates to negotiations with unions, not internal decision rights, and dismissal refers to firing someone, which also doesn’t describe where decisions are made. Decentralization highlights the distribution of power and responsibility throughout the organization.

Decentralization is about giving decision-making authority to lower levels in the organizational hierarchy. When authority is decentralized, frontline managers and regional units can make decisions that affect their areas, helping the organization respond more quickly to local needs and empowering employees.

This is the best answer because it directly describes how much control is handed down from the top. Centralization would mean keeping most decisions at the top, which is the opposite. Collective bargaining relates to negotiations with unions, not internal decision rights, and dismissal refers to firing someone, which also doesn’t describe where decisions are made. Decentralization highlights the distribution of power and responsibility throughout the organization.