Centralization:
In this structure the authority of decision and power is attached to the top management.
Because of that the conflict of decisions doesn’t take place between staff.
Decentralization :
There is the delegation of authority by the top management to the middle and lower levels of management in an organisation.
Centralization:
In this structure the authority of decision and power is attached to the top management. It should be kept mentioned that top management comprises of the most experienced and most educated people in the organization. So, the hand-picked people are designated as the top brass of an organization as they are in the driving seat, with power to steer the organization either in the wrong or right direction.
The most exciting benefit it is up with is that the conflict of decisions doesn’t take place between staff. On the other hand, it minimizes the role of subordinates and it ends up making employees good followers not the leaders themselves.
Advantages:
– A clear chain of command
– Centered vision
– Decreased expenses
– Fast execution of choices
Decentralization:
Decentralisation is referred to as a form of an organisational structure where there is the delegation of authority by the top management to the middle and lower levels of management in an organisation.
In this type of organisation structure, the duty of daily operations and minor decision-making capabilities are transferred to the middle and lower levels which allow top-level management to focus more on major decisions like business expansion, diversification etc.
Advantages:
– Reduce the workload of top level
– Greater job satisfaction with Subordinates
– Local knowledge
– Higher flexibility and quick response
Decentralisation:
A front desk manager at luxury hotel who gives 12 senior staff members the authority to upgrade guests.
A designing company should also have decentralized approach to allow employees to rely on their gut feeling and be more creative.
