Centralization and Decentralization

Topics: Management, Decision making, Organization Pages: 2 (289 words) Published: March 17, 2011
Questions 1: Explain what are the differences between the “Centralization” and “Decentralization”.

Below is the differences between the “Centralization” and “Decentralization”: |Centralizaion |Decentralization | |Centralization is the process by which the activities of an |Decentralization is the process of dispersing decision making | |organization, particularly those regarding decision making, |closer to the point of service or action. | |become concentrated within a particular location and/ or group. | | |It is the situation in which decision- making power is at the top|It is the policy of delegating decision- making authority | |of an organization and there is little delegation of authority. |throughout an organization (to the subunits of an organization) | | |relatively away from a central authority. | |Centralization means minimum autonomy and maximum restrictions on|Decentralization means semi-autonomous public authorities or | |operations of subunits of the organization. |corporations and transfer the responsibility of planning, | | |management and resources raising to the subunits of the | | |organization. | |A centralized organization is defined as one in which store |A decentralized organization gives freedom to store managers to | |practices are mandated from corporate headquarters (HQ) and this |adopt their own ideas and disseminates innovations made by the | |results in HQ being the sole source of new ideas. |store...
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