The distribution of authority is a key aspect of organizational design. It determines where in the structure decisions are made.
Step 1: Understanding the Question:
The question asks for the term that describes the systematic dispersal or distribution of decision-making authority to lower levels of an organization.
Step 2: Detailed Explanation:
Let's define the options:
(A) Centralization: This is the concentration of decision-making authority at the top level of management.
(B) Decentralization: This is the systematic delegation of authority at all levels of management and throughout the organization. Decision-making is pushed down to the managers who are closest to the action. This matches the question's description.
(C) Delegation: This is the process of a manager assigning authority to a subordinate for a specific task. Decentralization is a broader concept that results from a policy of widespread delegation.
(D) Coordination: This is the process of integrating activities to achieve common goals.
The term for disbursing authority throughout the entire structure is Decentralization.
Step 3: Final Answer:
The correct term is Decentralization.