Question

Southwest Airlines gives its employees considerable spending authority to fix a problem. When a flight was delayed, the pilot ordered lunch for the passengers and paid with his Southwest credit card. The company praised him for taking the initiative instead of faulting the expense. This represents

Answer 1

Decentralization

Step-by-step explanation:

In business, Decentralization refers to the transfer of power from the Top Management to the lower-level management or common employees. Business who enacted a decentralization will allow its employees to make decisions without having to confirm to higher level management.

This can be seen in the example above.

Spending budget usually controlled by the Top level management. The fact that Employees are allowed to control the spending operation indicates that the top managers decentralized their authority to the employees.