Difference Between Centralization And Decentralization
The main dissimilarities or difference between centralization and decentralization can be pointed as follows:
1. Introduction
Centralization: Concentration of power, authority and responsibility under the top level management.
Decentralization: Dispersion or distribution of power, authority and responsibility to different level of management.
2. What Is It ?
Centralization: It is retention of authority
Decentralization: It is distribution of authority
3. Decision Making
Centralization: Prompt decision making is possible
Decentralization: It requires long decision making process
4. Nature
Centralization: It is autocratic in nature
Decentralization: It is democratic in nature
5. Communication
Centralization: It uses top to bottom (vertical) system of communication
Decentralization: It uses free and open system of communication
6. Duplication Of Work
Centralization: There will be no duplication of work
Decentralization: There is a chance of duplication of work
7. Control
Centralization: Tight and effective control
Decentralization: Comparatively loose control system
8. Flexibility
Centralization: No flexibility
Decentralization: High flexibility
Also Read:
Also Read:
9. Coordination
Centralization: Better coordination is possible
Decentralization: Difficult to maintain coordination
10. Benefit
Centralization: Effective control, better coordination and quick decision making etc.
Decentralization: Work sharing and promotion of team spirit
11. Suitable For
Centralization: It is suitable for newly established and small organizations with less operational activities.
Decentralization: It is suitable for large firms with various operational activities.
Centralization Vs Decentralization (Comparison Chart)
I hope this post is helpful to understand the difference between centralization and decentralization and to make comparison between them.
Centralization Vs Decentralization (Comparison Chart)
Basis For Difference
|
Centralization
|
Decentralization
|
Introduction
|
Concentration of power and authority under the top management
|
Dispersion of power and authority to all level of management
|
Authority
|
Retained
|
Distributed
|
Decision Making
|
Quick
|
Slow
|
Nature
|
Autocratic
|
Democratic
|
Communication
|
Vertical
|
Open
|
Duplication Of Work
|
No
|
High possibility
|
Control
|
Tight
|
Loose
|
Flexibility
|
No
|
Yes
|
Coordination
|
Easy
|
Difficult
|
Benefits
|
Prompt decision making, better control and coordination etc.
|
Work sharing, promotion team spirit etc.
|
Suitability
|
For new and small organizations
|
For large firms
|
I hope this post is helpful to understand the difference between centralization and decentralization and to make comparison between them.
