Final answer:
The delegation of decision-making to lower-level employees is called empowerment, which contrasts with the traditional hierarchy of authority. Empowerment and laissez-faire leadership contribute to flatter organizational structures, allowing for more efficient decision-making and improved employee morale.
Step-by-step explanation:
The term used to describe the delegation of decision-making and problem-resolution authority to lower-level employees within an organization is empowerment. This concept aligns with the shift from traditional hierarchy of authority, where commands flow from the top down, toward more decentralized models that encourage employee initiative and responsibility. Unlike traditional bureaucratic structures, where a shift manager at Walmart would escalate issues following a chain of command, empowerment allows for quicker decision-making at lower levels, often leading to more efficient problem resolution, better customer service, and increased employee morale.
Organizations have been adopting flatter structures with an understanding of the benefits that come from a more equal partnership between managers and employees. In practice, this might resemble a laissez-faire leadership style, where leaders take a hands-off approach and allow employees to self-manage and make decisions. While this can foster creativity and a strong sense of personal responsibility, it is most effective with a mature workforce that has clear goals and guidelines.