What does the process of delegating decision-making authority within an organization refer to?

The process of delegating decision-making authority within an organization is referred to as empowerment. Empowerment involves giving employees the autonomy to make decisions related to their work, which fosters a sense of ownership and responsibility. This practice enhances employees' confidence, encourages their involvement in problem-solving, and can lead to improved performance and job satisfaction.

In the context of organizational dynamics, empowerment is crucial for cultivating a proactive workforce. It involves not just passing on decision-making authority but also equipping employees with the necessary tools, resources, and training to make informed decisions. This results in a more agile organization where decisions can be made closer to the action, often leading to faster response times to challenges and opportunities.

While delegation refers to the act of assigning specific tasks or responsibilities to others, it may not encompass the full breadth of empowering individuals to make broader decisions on their own initiative. Management refers to the overall coordination and oversight of organizational activities, while authority specifically pertains to the power granted to individuals within the organization to make decisions and command resources. Empowerment incorporates elements of delegation but focuses more on the overall capability and authority of employees to engage in decision-making.