What is the term for the distribution of power away from a central authority to local branches?

The term for the distribution of power away from a central authority to local branches is decentralization. This concept involves transferring decision-making authority and responsibilities from a central organization or government to local units or branches, thereby allowing for greater flexibility and responsiveness to local needs. Decentralization can empower local managers, improve efficiency, and enhance service delivery by enabling those closest to the issues at hand to make decisions and take actions that are more suited to their specific contexts.

In many organizations, this approach facilitates agility, as local units can adapt more quickly to changes in their environment without waiting for central approval. This contrasts with centralization, where decision-making is concentrated at the top levels of authority, potentially leading to a lack of responsiveness and slower reaction times to local issues. Through decentralization, businesses can foster innovation and tailor their strategies more effectively to diverse markets by leveraging local knowledge and expertise.