Final answer:
Decentralization refers to the delegation of decision-making power from higher to lower levels within an organization, moving away from a strict hierarchy toward flatter structures and more autonomous decision-making at lower levels.
Step-by-step explanation:
The concept being described is decentralization, which involves the redistribution of authority and decision-making power from higher to lower levels within an organization. In a hierarchy of authority, individuals have clear roles within an established chain of command, with each level accountable to the one above. However, recent trends in organizational management have seen a shift towards flatter organizational structures, where employees at lower levels are empowered to make decisions without seeking approval from upper management. This approach can enhance responsiveness to customer needs and encourage initiative among staff. Moreover, this management style may reflect a laissez-faire leadership where leaders are hands-off, allowing team members more autonomy in their decision-making. As part of this shift, there is a growing appreciation for the mutual benefits that arise when employees can contribute meaningfully to their organization's success, and when supervisors provide resources to support employees' job and career growth. While traditional hierarchies follow` a strict top-down chain of command, modern organizational structures increasingly support a more collaborative approach to decision-making and problem-solving. This can change the dynamic of traditional authority and often leads to more efficient and effective operational outcomes.