Final answer:
A policy delegating investment decisions at the division level and hiring decisions at the departmental level exemplifies decentralized authority within an organization's hierarchy.
Step-by-step explanation:
A policy that states "investment decisions are authorized at the division level, while hiring decisions are authorized at the departmental level" is an example of decentralized authority. This means that the power to make certain decisions is distributed among different levels or divisions within an organization, rather than being concentrated at a top central level. In the given example, investment decisions and hiring decisions are made by individuals who are closer to the relevant operations, which typically allows for more direct and specialized handling of such matters.
Decentralized authority is common in large organizations where the hierarchy of authority plays an essential role in maintaining order. By having a clear chain of command and allowing for specialization within different levels of the organization, bureaucracies can function more efficiently and responsively to their diverse operations and challenges.