Case study on centralisation and decentralisation

Short essay description
The above terms denote the administration authority of any given organization. Centralization of authority is concentrating it in one position or department. In decentralization, authority is dispersed from two different departments. Centralization of authority slants towards power and domineering of the decision-making processes in the organization. Decentralization encourages competition and participation in the decision-making.
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Decentralized Organization

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Decentralization: The Centralization Process |

There are advantages as well as disadvantages of both types of structures. A pure form of centralization is not practical except in small companies and pure form of decentralization almost never exists. However, the type of organizational structure would determine the degree of centralization or the degree of decentralization. As the organizations grow bigger by expansion, mergers or acquisitions, decentralization becomes both necessary and practical. For example, if an automobile company acquires a company that makes refrigerators, then decentralization would be the natural outcome since policies and decisions in these two distinctly different areas may not be similar. The important question is not whether there should be decentralization, but decentralization to what degree. In addition to decentralization being logistically superior, it is also advocated by most behavioral scientists as being more democratic and hence highly morale boosting that positively affects productivity.
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Decentralization: The Centralization Process

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Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Eriksson , Karin Gustavsson Published Political Science With this study we aim to create an understanding about motivational effect of using centralized goal-setting in multiunit organizations. Multiunit organizations are often decentralized in their st Save to Library.
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