centralization+and+decentralization

The difference between centralization and decentralization:

centralization definition: The process of transferring and assigning decision making authority to higher levels of an organizational hierarchy. In a centralized organization, the decision making has been moved to higher levels or tires of the organaization, such as a head office, or a corporate center. Knowledge, information and ideas are concentrated at the top, and decisions are cascaded down the organization. The span of control of top managers is relatively broad, and there are relatively many tires in the organization.

decentralization definition: The process of transferring and assigning decision making authority to lower levels of an organizational hierarchy. In a decentralized organization, the decision making has been moved to lower levels or tires of the organaization, such as divisions, branches, departments,or subsidiaries. Knowledge, information and ideas are flowing from the bottom to the top of the organization. The span of control of top managers is relatively small, and there are relatively few tires in the organization, because there is more autonomy in the lower ranks.

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