Final answer:
Decentralized decision-making distributes the decision-making process throughout an organization, allowing for a diversity of input and reducing the concentration of power. This can manifest in flat organizational structures or through advisory bodies like boards of directors or councils.
Step-by-step explanation:
Decentralized decision-making is when decision making is not confined to a few top executives, but rather it is spread throughout the organization. This approach allows for more voices to be heard and for decisions to reflect a wider array of perspectives and expertise. Elected officials or top-ranking executives often rely on a diverse set of actors within a vast governmental or organizational structure to develop and implement public policy or company strategies effectively.
In practice, this can take the form of flat organizational structures, where team work is emphasized, or through the use of councils in more centralized societies. With flat organizational structures, even an entry-level employee may be invited to provide feedback to a director, fostering a collegial atmosphere that values diverse input. Additionally, within companies, a board of directors may offer advice and ensure that the company operates in the shareholders' interests, though its members may be influenced by top executives. Partnerships in business also exemplify decentralized decision-making as partners with complementary skills make decisions collaboratively.