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Difference between centralization and decentralization

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Difference between centralization and decentralization

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The main differences between a centralization and decentralization in the management of an organization is with regard to the exercise of authority and power. In centralization, the exercise of authority and power is limited only with the top management or executives. On the other hand, the exercise of authority and power in decentralization is delegated to lower management officers. The effect in centralization is that, there is slower determination and implementation of orders as it must always come from the top management, hence it is best applied to small organizations. On decentralization, there is faster determination and implementation of orders as the lower management officers need not refer any action to the top management before they can act on any issue. it is best applied to larger organizations,

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