Following are the differential factors between Centralisation and Decentralisation.
|
| Basis of Difference |
Centralisation |
Decentralisation |
| Authority |
Authority remains concentrated only in few hands at the higher level of management. |
Authority is delegated to lower levels of management. |
| Creativity |
Restricts creativity of middle and lower level managers. |
Promotes creativity and innovation at all the levels. |
| Work Load |
Higher work load on the top level managers. |
Lesser workload as sharing of authority and responsibility is done. |
| Scope of Delegation |
Scope of delegation is limited as power is concentrated in a few hands. |
Wider scope of delegation as authority can be transferred. |
| Subordinate Initiative |
Limits the scope of initiatives by subordinates as the workers have to work on the pre-decided path. |
Encourages the subordinates to come forward and take initiative as they are allowed the needed freedom for working. |
| Decision Making |
The decision making is slowed down as the power lies only with the top management. The problem has to pass through different levels before an action is taken. |
The decision making is quick as the authority lies near the actual action. |
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