Difference between Centralization and Decentralization

 

Difference between Centralization and Decentralization 

 

Centralization 

1. It originates in small organization.

2. It is necessary in all institutions.

3. Most of the authority is with the top level management and less authority at the lower level.

4. It is suitable for small organizations or institutions.

 

5. After delegating the authority by the higher level, there is complete control over the subordinates, they do not have complete freedom to work.

6. Its area is limited.

7. It is necessary for some officers to take help from the lower officers in their work.

8. The workload of higher level officers has to be reduced.

9. It is effective in all organizations.

 

Decentralization 

1. It originates in large organizations.

2. It is not necessary to be in all the institutions.

3. Authority is systematically distributed from higher level to lower level.

4. It is suitable for large organizations or institutions.

 

5. There is no control over the subordinates once the authority is delegated by the superior. They have complete freedom to work.

6. Its area is wide.

7. It is based on the will of the higher authorities whether they consider it appropriate to implement or not.

8. By giving freedom of action to the lower level management, their capabilities have to be increased.

9. It is effective only in large organizations.