differentiate between centralisation and decentralization
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Here is your answer,
| BASIS FOR COMPARISON | CENTRALIZATION | DECENTRALIZATION |
|---|---|---|
| Meaning | The retention of powers and authority with respect to planning and decisions, with the top management, is known as Centralization. | The dissemination of authority, responsibility and accountability to the various management levels, is known as Decentralization. |
| Involves | Systematic and consistent reservation of authority. | Systematic dispersal of authority. |
| Communication Flow | Vertical | Open and Free |
| Decision Making | Slow | Comparatively faster |
| Advantage | Proper coordination and Leadership | Sharing of burden and responsibility |
| Power of decision making | Lies with the top management. | Multiple persons have the power of decision making. |
| Implemented when | Inadequate control over the organization | Considerable control over the organization |
| Best suited for | Small sized organization | Large sized organization |
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