Question
State the difference between centralization and decentralization.
| Basis for comparison | Centralization | Decentralization |
| $1.$ Meaning | The concentration of control of an activity or organization under a single authority is called centralization. | The delegation of power from upper to lower level in orderly manner is known as decentralization of power. |
| $2.$ Workload at top level | Increases | Decreases |
| $3.$ Communication flow | Vertical | Open and free |
| $4.$ Decision making | Decision making is slow | Decision making is comparatively faster |
| $5.$ Advantage | Centralization results in proper coordination and leadership | Decentralization leads to sharing of burden and responsibility |
| $6.$ Power of decision making | Lies with the top management | Multiple persons have the power of decision making |
| $7.$ Best suited for | Small sized organization | Large sized organization |
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