What is the difference between centralization
and decentralization?
Answer:
The term centralization refers to the
degree to which decision making is concentrated at a single point in the
organization.
The concept includes only formal authority, that is, the rights
inherent in one's position. The more that lower-level personnel provide input
or are actually given the discretion to make decision, the more
decentralization there is.
An organization characterized by centralization is
an inherently different structural animal from one that is decentralized. In a
decentralized organization, action can be taken more quickly to solve problems,
more people provide input into decisions, and employees are less likely to feel
alienated from those who make decisions that affect their work lives.
Essentials of Organizational Behavior /
Robbins & Judge - 10th edition