Concept
How do authority, centralization, and organizational decision-making work?
IntroductionToBusiness OP 8D04gAa / Glossary
"Authority is legitimate power, granted by the organization and acknowledged by employees, that allows an individual to request action and expect compliance. Centralization is the degree to which formal authority is concentrated in one area or level of an organization; in a centralized organization, top management makes most of the decisions. Decentralization is the process of pushing decision-making authority down the organizational hierarchy. Delegation of authority is the assignment of some degree of authority and responsibility to persons lower in the chain of command. The chain of command is the line of authority that extends from one level of an organization’s hierarchy to the next, from top to bottom, and makes clear who reports to whom. A committee structure is an organizational structure in which authority and responsibility are held by a group rather than an individual."
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