What term describes the organizational approach that distributes power and authority to lower-level employees?

The term that describes the organizational approach distributing power and authority to lower-level employees is decentralized structure. In a decentralized structure, decision-making power is spread out among various levels of the organization rather than being concentrated at the top. This allows lower-level employees to have more autonomy and frequently enables quicker responses to operational needs and customer demands. Decentralization can lead to increased employee motivation and engagement as individuals feel more empowered and responsible for their decisions, fostering a sense of ownership over their work.

In contrast, top-down management typically refers to a hierarchical approach where decisions are made at the upper levels and communicated down through the ranks. Centralized control keeps most decision-making authority at the top levels of management, limiting the input from lower-level staff. Functional delegation generally pertains to assigning responsibilities within specific functions or departments, rather than distributing authority across the organization. Thus, the decentralized structure is the most accurate term for the described organizational approach.