Centralisation & Decentralisation
CENTRALISATION AND DECENTRALISATION
INTRODUCTION
Centralisation and decentralisation are very important concepts of prganisation. They explain the manner in which the decision making authority' is distributed or delegated among various levels of the organization. The concept of centralisation and decentralisation deals with the distribution of overall organizational authority. Centralization is that condition where in much of decision making authority is retained at the top of management authority. Decentralization on the other hand is that condition where in much of the decision making authority is pushed downwards to the lower management levels.
CENTRALISATION Centralisation refers to systematic reservation of authority at central points within the organization. Centralisation means the concentration of formal authority at the top levels of an organization. It is a tendency aimed at centralized performance. Hence, it is the’ Opposite of dispersal and delegation of authority: It has an important bearing on the Processes of policy formulation and decision-making. these two major areas of Management or administration are the! reserves of the top management in a centralized organization. The lower levels of the organizational hierarchy always look upwards for direction, advice, clarification, interpretation, etc.
Need For Centralisation
Centralisation is needed to achieve the following objectives: * Establishing Personal Leadership * Personal leadership is effective function of small organizations. Success in such organizations depends on “aggressiveness, singleness of purpose and flexibility”. The leader can take quick decisions without losing time in discussion and arriving at a consensus which prove not only time consuming but also wasteful.
* Forgoing Integration * The functions of unification and integration may best be performed if a single person is endowed with centralized authority. It will help to keep different
INTRODUCTION
Centralisation and decentralisation are very important concepts of prganisation. They explain the manner in which the decision making authority' is distributed or delegated among various levels of the organization. The concept of centralisation and decentralisation deals with the distribution of overall organizational authority. Centralization is that condition where in much of decision making authority is retained at the top of management authority. Decentralization on the other hand is that condition where in much of the decision making authority is pushed downwards to the lower management levels.
CENTRALISATION Centralisation refers to systematic reservation of authority at central points within the organization. Centralisation means the concentration of formal authority at the top levels of an organization. It is a tendency aimed at centralized performance. Hence, it is the’ Opposite of dispersal and delegation of authority: It has an important bearing on the Processes of policy formulation and decision-making. these two major areas of Management or administration are the! reserves of the top management in a centralized organization. The lower levels of the organizational hierarchy always look upwards for direction, advice, clarification, interpretation, etc.
Need For Centralisation
Centralisation is needed to achieve the following objectives: * Establishing Personal Leadership * Personal leadership is effective function of small organizations. Success in such organizations depends on “aggressiveness, singleness of purpose and flexibility”. The leader can take quick decisions without losing time in discussion and arriving at a consensus which prove not only time consuming but also wasteful.
* Forgoing Integration * The functions of unification and integration may best be performed if a single person is endowed with centralized authority. It will help to keep different