The term that refers to the dispersal of authority throughout an organization is decentralization. Decentralization means distributing decision-making authority to various levels within the organization, often down to lower levels where the work is performed. It involves delegating authority so that important decisions are made not just at the top but also at different levels, promoting wider participation and involvement in decision-making across the organization
. Decentralization differs from mere delegation in that it is a broader, systematic effort to spread authority widely, rather than just transferring specific tasks from one individual to another. It enables local units or departments to function with a degree of autonomy, which can enhance responsiveness and efficiency
. In summary, decentralization is the organizational practice of dispersing authority and decision-making power throughout the hierarchy, rather than concentrating it at the top
