CENTRALIZED VS. DECENTRALIZED ORGANIZATION

Centralized vs. Decentralized Organization

Centralized vs. Decentralized Organization

Introduction

Centralization is also referred to as bureaucracy or hierarchical structures. Centralization in organizational theory is defined as a hierarchical decisionmaking structure with layers of participants. In centralization, high-level administrators retain the authority while delegating implementation to subordinates. The power rests at a single point in the organization. In centralized systems, one individual may be responsible for decision making. Centralization is associated with bureaucratic systems. They are tightly controlled with clear chains of command. Bureaucracies were structurally designed as a form of standardization for coordination (Mintzberg, 2005).

Decentralization refers to the diffusion ...