SmartHCM

What is a Decentralized Organizational Structure?

What is a decentralized organizational structure?

A decentralized organizational structure is a type of organizational design framework in which decision-making authority is distributed throughout the organization rather than being concentrated at the top. This often means that mid and lower-level managers can make decisions that affect their teams and projects without prior approval from senior management. 

One of the main benefits of a decentralized organizational structure is that it allows senior leaders to focus on more strategic tasks rather than on daily decision-making.

Some companies that have a decentralized organizational structure are:

  • Johnson & Johnson’s
  • Coca-Cola
  • Eventbrite.