Let`s see in the table below the main differences between centralization and decentralization. Thank you for your explanation on the difference between the two, I have long found a good explanation, but your article makes everything clear to me. (Figure) Discuss the difference between centralized and decentralized organizations. Does the size of the organization influence whether the organization has a central or decentralized structure? Explain. The difference between centralization and decentralization is one of the hottest themes today. Some people think centralization is better, while others are for decentralization. In ancient times, people ran their organization centrally, but now the scenario has completely changed due to the increase in competition, where quick decision-making is required, and that is why many organizations have opted for decentralization. The above points are the main differences between centralized and decentralized organizations. No method is perfect.
The type of organization and its structure can be determined according to the nature and scale of the company. The denominations and hierarchies in centralized and decentralized organizations may be the same, but the levels of decision-making are very different. Apple is an example of a centralized company. Apple Company`s most important and important decisions were made by Steve Jobs and the other senior executives. In this article, we will look at the differences between centralized organization and decentralized organization. Although centralization and decentralization are important for an organization. Centralization and decentralization, however, have many differences in decision-making, delegation of power and authority. This type of structure relies heavily on certain key people to design and implement certain key decisions. This does not necessarily mean that there is only one person who makes all the decisions in the organization.
People at different levels are allowed, but unlike decentralized organizations, there is less team-based decision-making and more individual decision-making. At present, most organizations have both functions, as it is not possible to centralize or decentralize. Total centralization is not feasible in an organization, as it represents that every decision of the organization is made by the highest level. On the other hand, total decentralization is an indicator of the lack of control over the activities of subordinates. It is therefore necessary to maintain a balance between these two. In this type of organization, most decisions are made by mid- or lower-level employees and not by management, as is the case with centralized organizations. A centralized organization is one in which important decisions are made by people at a higher level of authority….