Definition: Decentralization is the process of transferring and assigning decision making authority to lower levels of an organizational hierarchy.
Can be achieved 'via the organization chart' or by delegation.
In a decentralized organization, the decision-making has been moved to lower levels or tiers of the organization, such as divisions, branches, departments or subsidiaries.
Knowledge, information and ideas are flowing from the bottom to the top of the organization.
Is the opposite of centralization.



More on decentralization.
More on decision making: Centralization, Chain of Command, Delegation, Employee Empowerment, Employee Participation, more...


MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.

© 2020 MBA Brief - Last updated: 20-9-2020  -  Privacy   |   Terms