Question

merits and demerits of centralization and decentralization

Answer 1

Answer:

Merits of Centralisation/Limitations of Decentralisation:

Following are the advantages of centralisation/limitations of decentralisation:

(i) Consistency/Lack of Consistency in Decision-Making

(ii) Strong/Weak Top Management

(iii) Lower/Higher Costs of Administration

(iv) Broad/Narrow Approach to Managing

(v) Discouraging/Encouraging Inter-Departmental Conflicts

Limitations of Centralisation/Merits of Decentralization:

Following are the limitations of centralisation/ad vantages of decentralisation:

(i) Heavy Burden/Light Burden on Top Management

(ii) Organisational Growth Retarded/Facilitated

(iii) Lower/Higher Status of Lower Level Managers

(iv) Autocratic/Democratic Management

(v) Initiative Discouraged/Encouraged