Centralisation and Decentralization are two different concepts that refer to the way in which authority is distributed within an organization. This article will explain the key differences between these two approaches, exploring how they can impact decision-making processes and organizational structure.
About Difference Between Centralisation And Decentralization
| Centralisation | Decentralisation |
|---|---|
| Concentration of authority and decision-making power at the top level. | Delegation of decision-making to lower levels in an organisation. |
| Fewer people have control. | More people are involved in decision-making. |
| Quick decisions can be made. | Slower decision-making process due to more consultation. |
| Less flexibility. | Greater flexibility as different departments make their own decisions. |
| Costs may be reduced. | Increased costs due to decentralised structure. |
| Easier to manage. | More challenging to manage. |
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