Distinguish between centralisation and decentralisation.
Difference between centralisation and decentralisation:
Basis of Difference | Centralisation | Decentralisation |
---|---|---|
Meaning | The retention of power and authority with the top level of management is known as centralisation. | Dispersal of powers and authority to various levels of management is known as decentralisation. |
Communication Flow | The flow of communication in centralisation is vertical. | The flow of communication in decentralisation is open and free. |
Decision Making | The decision making process is slow in centralisation. | The decision making process in decentralisation is comparatively faster. |
Power of decision making |
Power of decision making lies in the hands of only the top level of management. | Power of decision making lies in the hands of various level of management. |
Work load | There is a higher workload on the top level managers. | There is less workload. They share authority and responsibility. |
Suitable for | It is suitable for small sized organisations. | It is suitable for large sized organisations. |
Creativity | It restricts the creativity of middle and lower level managers. | It promotes creativity and innovation at all levels of management. |
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Excercise 3 , Question 4: Distinguish between centralisation and decentralisation.....
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