Decentralized management is a system where decision-making authority is distributed among various levels of an organization rather than being concentrated at the top. This approach allows local managers and teams to make decisions that best suit their specific circumstances, leading to increased responsiveness and flexibility. In a decentralized structure, communication flows more freely, and employees often feel more empowered and engaged. Companies like W.L. Gore & Associates and Semco Partners exemplify this model, demonstrating how decentralization can foster innovation and adaptability in a rapidly changing business environment.