Centralization and decentralization malayalam meaning
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Centralization and decentralization
കേന്ദ്രീകരണവും വികേന്ദ്രീകരണവും
kēndrīkaraṇavuṁ vikēndrīkaraṇavuṁ
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The difference between a centralized and a decentralized system of organization is that in a centralized structure all the decision making and authority are focused on the top tier of management.
- These few people are the ones that dictate company policy and make all the crucial decisions. A decentralized system, on the other hand, delegates authority throughout the organization and to all levels of management.
- Very often the methods used will depend on a variety of influences such as the size of the company and if it is scattered in a variety of places rather than all under one roof. In a huge organization with many diversifications, like General Motors, for example, there is more likely to be evidence of a decentralized system because it would be impossible and impractical for only a handful of people to ensure that every aspect of the operation was covered.
- Advantages of centralization include an organization’s ability to be able to keep a tight grip on all aspects of the business. In a smaller business where centralization is possible, there is less chance that employees will be unaware of what is expected and what the common goals are because there is such a tight grip on all aspects of the organization from management.
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