Decentralization is the process of moving decision-making authority down the organizational hierarchy, giving lower-level employees more responsibility and authority to make and execute decisions.
An organizational structure in which decision-making authority is delegated to subordinate managers who are more familiar with local conditions than those at headquarters. Optimal number of subordinates that a manager oversees or should oversee.
Organizations that use traditional hierarchical structures rely on vertical chains of command as the primary way to organize employees and their responsibilities.
Employee privileges increase as they move up the hierarchy. If you need leadership, you also need authority. Authority ensures that everyone under the manager's command is working toward organizational goals or facing discipline.
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