Final answer:
Decentralization is the spreading of decision-making authority across different levels of an organization, rather than concentrating it near the top. It facilitates responsiveness to local needs and can contribute to greater autonomy within parts of an organization.
Step-by-step explanation:
Decentralization refers to the distribution of decision-making authority throughout an organization, rather than concentrating it near the top. Therefore, the statement "Decentralization means that the decision authority is located near the top of the organization" is false.
Decisions in a decentralized organization are more likely to be made by individuals or departments closer to the operations and issues they pertain to, which can enhance flexibility and response time to changes and local needs.
An example of a decentralized decision-making process can be seen in educational institutions where individual schools or departments may have the authority to make decisions about their own curricula or resources, instead of these decisions being controlled solely by the central administration.
This is opposed to a centralized structure where the higher-level management has the majority of the decision-making power.
In a bureaucracy, there is a hierarchy of authority with a clear chain of command, but this hierarchy does not necessarily mean decision-making is centralized.
In the context of governance, as mentioned with the example of the United Kingdom undergoing devolution, decentralization can lead to sub-national governments, like those in Scotland, Wales, and Northern Ireland, receiving powers that were previously held by the central or national government.
This process enhances the capacity of these regions to tailor their governance to the specific needs of their constituencies.