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.NO | CENTRALIZATION | 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. |
| 3 | Formal | Informal |
| 4 | Suitable for smaller organization | Suitable for large organization |
| 5 | Vertical from top to down approach | Horizontal equal level |
