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.