DIFFERENCE BETWEEN CENTRALIZATION AND DECENTRALIZATION

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

S.NOCENTRALIZATIONDECENTRALIZATION
1Concentration of authorityDispersion of authority
2It refers to the reservation of authority at the top level of the organization.It refers to the systematic delegation of authority in the organization.
3FormalInformal
4Suitable for smaller organizationSuitable for large organization
5Vertical from top to down approachHorizontal equal level

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