In which structure is control and decision-making delegated to departments, reducing the burden on senior management?

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A decentralized structure is characterized by the delegation of authority and decision-making powers to various departments or lower levels within an organization. This allows for greater autonomy and responsiveness at the departmental level, which can lead to faster decision-making as departments have the authority to address specific issues without needing to seek approval from senior management for every action. This structure often enhances innovation and flexibility, as departments can tailor their strategies to meet the unique needs of their customers and markets.

In contrast, a centralized structure concentrates decision-making authority at the top levels of management, often resulting in more uniform policies but potentially slower responses to local needs. A hierarchical structure organizes the company in a clear chain of command, but this does not inherently involve delegating decision-making down to lower levels; it might still maintain central control over major decisions. A matrix structure combines elements of both functional and project-based approaches, allowing for flexibility and collaboration across departments but still may not decentralize decision-making to the extent seen in a decentralized structure. Therefore, the decentralized structure stands out as the one that effectively reduces the burden on senior management by empowering departments to make decisions independently.

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