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Question:

Distinguish between centralisation and decentralisation.

Answer:

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.

 


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