Difference Between Centralization And Decentralization

Although new technologies are a good way of communication they also have problems. Time zone differences must be taken into account as also cultural characteristics. A company will be centralized and global while information is used for advantage and power. In the international and transnational companies, national operating companies communicate

centralized the national regime. Indonesia determined to apply a policy of decentralization that became effective on January 1st, 2001. This essay would explain the failure of Indonesian decentralization, whereas this essay only has one area of focus, the failure of distribution of power. Why decentralization in Indonesia has failed? The main factor of this failure has been started in the first time Indonesia apply decentralization after 1998 tragedy whereas the end of Soeharto’s period and the end of

complexity or their form of government, must tackle an important choice when it comes to decide how the power is distributed between the central government and the sub-national entities who exercise governmental functions at local level. The two possibilities at the end of the spectrum, i.e.: complete decentralization of powers to local bodies on the one hand and total centralization of administrative and fiscal powers in the central government on the other hand, are often not feasible since both entail

I. Organizational Decentralization Rationale of Decentralization The term decentralization is often used in business environments and can be defined as the organizational severance and division of power, capital, and technical procedures and control into multiple units of the business.1 Decentralized corporations make it possible for managers to control without ownership. 4 In decentralized organizations, the breakdown is that the president of each unit of a business is on his or her own management-wise

unsurprisingly affected the relationship between employees and managers. With decentralization on the rise, the gap between employee and manager continues to shrink as they continue to share an increasing number of responsibilities, including those regarding decision-making. Although the structure of an organization typically derives from its overall strategy, these new employee/manager relationships have caused new organizational strategies to be implemented. Centralization refers to “the degree to which

in mining engineering and he started working in a coal company as an engineer.Henry Fayol was known as the “Father of Management Studies and Thoughts”. The reasons he was known for the same are: • He did give the detailed explanation about the differences in the technical and managerial skill. • He explained the important functions of management (planning, organizing ,staffing, directing and controlling) • He developed 14 management principles. Those principles are made as the guidelines for managers

many other countries operate. . Federalism a system that involves compromising between the two extremes of Centralization and Decentralization. The system always has opposing sides pushing to get the balance more to their side of the spectrum. In the United States these forces are usually seen as Democrats and Republicans. I see the U.S. located on the spectrum of federalism much closer to Centralization than Decentralization. Currently, the Republican party has a majority in congress and a Republican

Organization 6 4.0.3. Disadvantages of Centralization 7 4.0.4. Centralized Responsibility and Decision Making 7 5.0. DECENTRALIZED ORGANIZATION8 5.0.1. Structure of a Decentralized Organization 10 5.0.2. Advantages of Decentralized Organizations 10 5.0.3. Disadvantages of Decentralization 10 5.0.4. Decentralized Responsibility and Decision Making 11 6.0. BUSINESS ETHICS AND ORGANIZATIONAL STRUCTURE 12 7.0. DECISION GUIDELINES FOR THE QUESTION OF CENTRALIZATION OR DECENTRALIZATION 14 8.0. CONCLUSION 15 9.0. REFERENCES

5) Centralization & decentralization – Centralization is when the authority is located at a single point usually at the top level of the organisation and decentralization is when decision authority is pushed down to lower organisation levels. Decentralization is believed to relieve burden on top managers, make greater use of worker skills and abilities and permit rapid response to

............................................... 17 3.3.2 IT & Business Capability................................................................................................................... 19 3.4 ORGANIZING THE IT FUNCTION (CENTRALIZATION VS. DECENTRALIZATION) ........................................... 20 3.4.1 Hybrid System/Shared services ......................................................................................................... 20 3.4.2 organising IT for Innovation ....