Question
State the difference between centralization and decentralization.

Answer

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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