Question
Clarify the difference between Centralization and Decentralization.

Answer

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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