Which term describes the type of organisation where decision making is pushed down the chain and away from the centre?

Study for the Edexcel A-Level Business Test. Dive into flashcards and multiple-choice questions, each with helpful explanations. Elevate your exam readiness today!

Multiple Choice

Which term describes the type of organisation where decision making is pushed down the chain and away from the centre?

Explanation:
Decentralisation. This term means authority and decision-making are moved out of the central leadership and pushed down to lower levels of the organisation. By distributing power closer to where work happens, decisions can be made more quickly and tailored to local needs, drawing on local knowledge and empowering managers and staff. Centralisation is the opposite, keeping decisions at the top. Delayering reduces layers in the hierarchy but isn’t itself about where decisions are made. Delegation involves granting subordinates some authority for tasks, but the overall decision-making locus can still sit with higher levels. The idea described in the question is decentralisation.

Decentralisation.

This term means authority and decision-making are moved out of the central leadership and pushed down to lower levels of the organisation. By distributing power closer to where work happens, decisions can be made more quickly and tailored to local needs, drawing on local knowledge and empowering managers and staff. Centralisation is the opposite, keeping decisions at the top. Delayering reduces layers in the hierarchy but isn’t itself about where decisions are made. Delegation involves granting subordinates some authority for tasks, but the overall decision-making locus can still sit with higher levels. The idea described in the question is decentralisation.

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