When a company distributes decision-making authority across various levels, what process are they undergoing?

When a company distributes decision-making authority across various levels, it is undergoing the process of decentralizing. Decentralization involves the transfer of decision-making capabilities from a central authority to smaller units or departments within the organization. This allows for more localized control and enables managers at different levels to make decisions that are more responsive to specific circumstances within their areas of responsibility.

In a decentralized organization, lower-level managers and employees often have the freedom to make decisions, which can lead to increased motivation and a sense of ownership over their work. This approach can also improve the organization's agility, as decisions can be made more quickly without needing to await approval from higher-ups.

While options like centralizing refer to consolidating authority at the top levels of management, or outsourcing relates to delegating specific business processes to third-party providers, these do not represent the distribution of decision-making authority. Delegating, while related to distributing tasks, typically refers to assigning specific responsibilities rather than granting comprehensive decision-making power throughout the organization. Therefore, decentralizing is the correct concept that accurately describes the process in question.