Centralization & Decentralization

Centralized administrations system and Decentralized administration structure.

1. Centralization & Decentralization Definition and difference

2. Centralization & Decentralization 2 Presented By: Fermila Yousaf

3. Definition of Centralization "The concentration of control of an activity or organization under a single authority." " The action or process of bringing activities together in one place ." " Administrative  authority from lower to higher level of  government  is called  centralization .” According to Allen, “ centralization  is systematic and consistent reservation of authority at central". Prepared by Fermila 3

4. Merits of Centralization 1.A clear chain of command 2. Focused vision 3. Reduced costs 4. Quick implementation of decisions 5. Improved quality of work Your company name 4

5. Disadvantages of Centralization 1. Bureaucratic leadership 2. Remote control 3. Delays in work 4. Lack of employee loyalty Summary Your company name 5

6. Decentralization “Decentralization can be viewed as an extension of delegation”. 1. “Decentralization refers to tire systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points.” —Louis A. Allen 2. “Decentralization means the division of a group of functions and activities into relatively autonomous units with overall authority and responsibility for their operation delegate to timid of cacti unit.’—Earl. P. Strong Your company name 6

7. Advantage of Decentralization 1. Reduces the burden on top executives 2. Facilitates diversification 3. To provide product and market emphasis 4. It promotes motivation 5. Better control and supervision 6. Quick Decision-Making 7. Executive Development Your company name 7

8. Disadvantage of decentralization Uniform policies not Followed 2. Problem of Co-Ordination 3. More Financial Burden 4. Require Qualified Personnel 5. Conflict 8

9. Comparison between Centralization & Decentralization CENTRALIZATION The retention of powers and authority with respect to planning and decisions, with the top management, is known as Centralization. Systematic and consistent reservation of authority. Vertical Slow Proper coordination and Leadership Lies with the top Inadequate control over the organization. Small sized organization DECENTRALIZATION The dissemination of authority, responsibility and accountability to the various management levels, is known as Decentralization. Systematic dispersal of authority. Open and Free. Comparatively faster. Sharing of burden and responsibility. Multiple persons have the power of decision making. Considerable control over the organization. Large sized organization Your company name 9

10. 10 The difference between centralization and decentralization is one of the hot topics these days. Some people think that centralization is better while others are in favor of decentralization. In ancient times, people used to run their organization in a centralized manner, but now the scenario has been changed completely due to rise in the competition where quick decision making is required and therefore many organizations opted for decentralization. At present, most of the organization are equipped with both the features, as absolute centralization or decentralization is not possible. Complete centralization in an organization not practicable because it represents that each and every single decision of the organization is taken by the top echelon. On the other hand, full fledge decentralization is an indicator of no control over the activities of subordinates. So, a balance between these two should be maintained. Conclusion

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