Question

10 point of difference between centralisation and decentralization

Answer 1

CENTRALISATION:-

1. Meaning

The retention of powers and authority with respect to planning and decisions, with the top management, is known as Centralization.

2. Involves

Systematic and consistent reservation of authority.

3. Communication Flow

Vertical

4. Decision Making

Slow

5. Advantage

Proper coordination and Leadership

6. Power of decision making

Lies with the top management.

7. Implemented when

Inadequate control over the organization

8. Best suited for

Small sized organization

DECENTRALISATION:-

1. Meaning

The dissemination of authority, responsibility and accountability to the various management levels, is known as Decentralization.

2. Involves

Systematic dispersal of authority.

3. communication Flow

Open and Free

4. Decision making

Comparatively faster

5. Advantage

Sharing of burden and responsibility

6. Power of decision making

Sharing of burden and responsibility

7. Implemented when

Considerable control over the organization

8. Best suited for

Large sized organization

CONCLUSION:-

The difference between centralization and decentralization is one of the hot topics these days. Some people think that centralization is better while others are in favor of decentralization. In ancient times, people used to run their organization in a centralized manner, but now the scenario has been changed completely due to rise in the competition where quick decision making is required and therefore many organizations opted for decentralization.

At present, most of the organisation are equipped wth both the features, as absolute centralization or decentralization is not possible. Complete centralization in an organisation not practicable because it represents that each and every single decision of the organisation is taken by the top echelon. On the other hand, full fledge decentralization is an indicator of no control over the activities of subordinates. So, a balance between these two should be maintained.

Answer 2

Difference between centralisation and decentralization

Explanation:

1. in case of centralization power and authority are retained at top level while in case of decentralization decision making authority are delegated at lower level.
2. decision making is slow in centralization while it is fast in decentralization.
3. decision making power rests with top management in centralization while different people have right to take decision in decentralization.
4. centralization is possible in small organization, large organization prefer decentralization.
5. uniformity of decision exists in centralization, uniformity of decision is not possible in decentralization.

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Difference between centralisation and decentralization

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