Question
Clarify the difference between Centralization and Decentralization.
| Sr. No. | Point of Difference | Centralization | Decentralization |
| $1.$ | Meaning | When the decision making power rest on the upper level only, it id known as Centralization of power. | When the decision making is done by all the levels as per the requirement is known as Decentralization. |
| $2.$ | Workload | It increases the work load of the top level. | It reduce the work load of the top level. |
| $3.$ | Authority decision making | The authority of decision making is with top level. | The authority of decision making is with the employees of respective level. |
| $4.$ | Delegation of Authority | There is lack of delegation of authority. | There id delegation of authority is such system. |
| $5.$ | Where is suitable | This is suitable for small business units. | This is suitable for big business. |
| $6.$ | Where is favorable maintained. | It is favorable for the business where business secrets are necessary to be maintained. | It is not favorable doe the business where business secrets are necessary to be |
| $7.$ | Attitude of the employees | It may create non-co-operative attitude among the employees due to autocratic decisions. | It creates co-operative attitude among the employees as they are the decision takes. |
| $8.$ | Motivation | As the authority is centralized with officer his work tends to increase. | As the officers do not have all the power not much motivation is seen. |
| $9.$ | Corruption | Centralization encourages corruption and undue influence. | In case of decentralization the possibilities corruption and undue influence are less. |
| $10.$ | Cost | The administrative costs are less to the extent of centralization. | The administrative costs increase to the extent of decentralizations. |
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