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Centralized vs. decentralized decision-making and its impact on employee empowerment and satisfaction.
Centralized organizations restrict employees' freedom to make decisions by assigning decision-making responsibility to higher-level managers. In contrast, decentralized companies empower lower-level employees by giving them more authority, resulting in faster decision-making and a sense of procedural fairness. Research shows that a laissez-faire decision-making style can lead to decreased employee satisfaction and effectiveness.
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