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Key difference between centralization and decentralization in an organization
Centralization and decentralization are the two important organizational structure types. It is the location or post of the decision making authority in the organization which helps in identifying whether the organization is centralized or decentralized.
Centralization
An organization is said to have the centralized structure when the flow of decision is from top to low. It means that in centralization, the decision making power rests in the hands of the top managers. This is the traditional approach and was commonly practiced in all the types of organizations. There are many experts who suggest that centralizations enable the owners to be retained in the hands of the central location.
Decentralization
It is the management practice in which the authorities and responsibilities are distributed to the middle level to function it smoothly without any trouble. It reduces the work load from the shoulders of the manager while enabling them to improve the organizational effectiveness. Contact to centralization management homework help for best answers.
Whether an organization should be centralized or decentralized?
Considering the present competitive market, it is very important for the organization to deploy the pros of centralization and decentralization. Centralization is the traditional concept because earlier the businessmen believe that centralization helps in reducing the frauds in the organizations and enable the management to have full control over the business.
On the other hand, decentralization will help the organization to grow while reducing the stress of the top management and rests the authorities in the hands of the employees and make them feel as a part of the company. In this way, the employee retention rate is on the higher side. So it can be little bit confusing to implement any one type of structure in the organization.
This is the reason why modern business organizations are equipped with both the features. It will help the managers to gain access over the business while working in coordination. To make your concept clear, you should access centralization management assignment help for detailed analysis of the organizational structure.
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