When Authority Is Decentralized?

Decentralisation is passing of authority to make decisions to the lowest possible level in the organisational hierarchy. Decentralisation is delegation of authority to the maximum possible extent. Decentralization marks an extension of the process of delegation.

What is a decentralized authority?

'Decentralisation of Authority' refers to the dispersal of authority for decision-making in various levels of organisational operations throughout the organisation.

When should a decision be decentralized?

Delivering value in the shortest sustainable lead time requires decentralized decision-making. It is a key tenet of Lean thinking. Any decision that must be escalated to higher levels of authority introduces a delay.