Which term describes the distribution of decision-making powers across units rather than at the centre?

Which term describes the distribution of decision-making powers across units rather than at the centre?

• A. Centralisation
• B. Delayering
• C. Decentralisation
• D. Delegation

Answer: (C)

Decentralisation is when decision-making power is spread across units rather than kept at the centre. This means local managers or separate business units have the authority to make key choices without waiting for approval from head office. It helps the organisation respond quickly to local needs, tailor products or marketing to different markets, and can boost motivation by giving managers ownership of outcomes. For example, letting country subsidiaries set their own prices or approve local budgets within set limits is decentralisation. Centralisation would keep those decisions at the top, delayering is about removing layers of management to flatten the structure, and delegation is about assigning tasks while the authority to make broader decisions often remains with the manager who delegated.

Decentralisation is when decision-making power is spread across units rather than kept at the centre. This means local managers or separate business units have the authority to make key choices without waiting for approval from head office. It helps the organisation respond quickly to local needs, tailor products or marketing to different markets, and can boost motivation by giving managers ownership of outcomes. For example, letting country subsidiaries set their own prices or approve local budgets within set limits is decentralisation. Centralisation would keep those decisions at the top, delayering is about removing layers of management to flatten the structure, and delegation is about assigning tasks while the authority to make broader decisions often remains with the manager who delegated.