Final answer:
The giving of decision-making and problem-solving authority to lower-level employees is known as delegation. This approach can improve organizational efficiency and reflects a shift towards a more equal partnership between employees and management.
Step-by-step explanation:
The word used to describe the giving of decision-making and problem-solving authority to lower-level employees in an organization is delegation. This is the process where the hierarchy of authority is somewhat flattened, and management shares responsibilities with subordinates to improve efficiency and communication. This change often results from recognizing the benefits of a more equal partnership, where both the employee and the supervisor contribute mutually to achieve the organization's broader goals. A laissez-faire leadership style might be a related concept, where a hands-off approach is taken and team members have the autonomy to make their own decisions and self-manage.
Delegating decision-making can reduce transaction costs but can also raise challenges if not implemented with clear guidelines and support. It is also important to understand that organizational styles can vary, and while delegation is a trend, it may not be universally found in all work environments.