In a decentralized organization, decision-making power is held by:

In a decentralized organization, decision-making power is shared among various levels of the organization, which includes both lower levels and upper management. This approach allows for greater flexibility and responsiveness at different layers of the business.

Decentralization empowers employees at lower levels to make decisions that affect their work and the operations of their teams. This practice not only enhances motivation and job satisfaction among employees but also encourages quicker decision-making, as those closest to the issue often have the best insights. Furthermore, by involving middle and lower management in decision-making processes, organizations can better leverage a diverse set of perspectives and expertise, leading to more informed choices.

In contrast to this, top-level management operating in an entirely centralized structure would retain all decision-making authority, making it less responsive to on-the-ground realities. Restricting decision-making to only middle management or entrusting external stakeholders would limit the responsiveness and adaptability that comes with a well-rounded, decentralized approach. Thus, the shared decision-making power across different organizational levels in a decentralized structure fosters a more collaborative and agile environment.