WHAT IS CENTRALIZATION?
- Centralization is the concentration of authority at the top of an organization or department.
- It is the process of systematically of retaining power and authority in the hands of higher-level managers.
WHAT IS DECENTRALIZATION?
- Decentralization is the delegation of authority to lower level of employees or departments.
- It is the process of systematically delegating power and authority throughout the organization to middle and lower-level managers.
DIFFERENCE BETWEEN CENTRALIZATION AND DECENTRALIZATION
|1||Concentration of authority||Dispersion of authority|
|2||It refers to the reservation of authority at the top level of the organization.||It refers to the systematic delegation of authority in the organization.|
|4||Suitable for smaller organization||Suitable for large organization|
|5||Vertical from top to down approach||Horizontal equal level|