Centralisation vs Decentralisation. Decentralisation is an important concept that has been a topic of hot debate in the last few decades. It applies to all organizations and even governments and pertains to devolution of power from the top to the bottom, grass root levels.
Centralization refers to the process in which activities involving planning and decision-making within an organization are concentrated to a specific leader or location. In a centralized organization, the decision-making powers are retained in the head office, and all other offices receive commands from the head.
This article attempts to clarify the differences between centralization and decentralization in an organisation, in both tabular form and in points. Centralization is the systematic and consistent concentration of authority at central points. Unlike, decentralization is the systematic delegation of authority in an organisation.
Centralisation or centralization (see spelling differences) is the process by which the activities of an organisation, particularly those regarding planning and decision-making, framing strategy and policies become concentrated within a particular geographical location group.This moves the important decision-making and planning powers within the center of the organisation.
Dysfunctional decentralisation systems are part of the story behind the crisis of democracies: it is thus critical to find ways to make decentralisation systems more effective. The report identifies ten guidelines for decentralisation to work and be conducive to regional development.
Difference Between Centralization and Decentralization. Harlon Moss Updated: June 26, 2019 4 Min Read. Main Difference. In business environments we mainly came across two types of organizational structures; centralization and decentralization. Both the organizational structures act upon as the antonym of each other.
Politically, centralisation simply means that a group of few people in a particular place exercise full control over a country or an organisation. Decentralisation is the opposite of Centralisation. It refers to the process of transferring powers, authority, functions, responsibilities and the requisite resources from a central government to local governments.
ADVANTAGES OF CENTRALISATION ADVANTAGES OF DECENTRALISATION A fixed set of rules and procedures in all areas of the firm should lead to rapid decision-making. More local decisions can be made which reflect different conditions - the managers who take decisions will have local knowledge and are likely to have closer contact with consumers.