Which concept refers to how closely employees are involved in the decision-making process?

Prepare for the ETS Major Field Test Business Exam. Use comprehensive flashcards and multiple choice questions, each with detailed explanations. Ensure your success!

The concept that refers to how closely employees are involved in the decision-making process is centralization. Centralization describes the extent to which decision-making authority is concentrated at higher levels of management within an organization. When a company is highly centralized, decisions are typically made by a few top executives, and lower-level employees have limited input. Conversely, a decentralized organization allows for more employee involvement in decision-making, empowering staff at various levels to contribute to the process.

In contrast, stability of tenure pertains to the continuity of employment and job security within an organization, which focuses on employee retention rather than decision-making roles. Esprit de Corps relates to team spirit or morale among employees, emphasizing cooperation and unity rather than their participation in decision-making. Subordination of individual interests speaks to the idea that personal goals should align with organizational objectives, focusing on the relationship between individual and corporate goals rather than the mechanism of decision-making.

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