Difference Between Centralization And Decentralization

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CENTRALIZATION AND DECENTRALIZATION QUAL8000-17S-Sec1-Quality, Strategy and Value Creation ASSIGNMENT BY SAITEJ BELLAMKONDA (7894140) EXECUTIVE SUMMARY ➢ In this assignment, the concept of Centralization and Decentralization is explained in a detailed manner and will be discussing about the centralization and decentralization impact on organizational success. I will also explain my opinion regarding the choice between centralized or decentralized organization in real life situations. ➢ Centralization is an old method and often used by small organizations where the company is under the control of CEO and decisions are made by only higher authority. ➢ Decentralization is the process where…show more content…
Small organizations often use this structure since the owner is responsible for the company’s business Success. ADVANTAGES: ➢ Centralized organizations can be extremely efficient regarding business decisions. ➢ Business owners typically develop the company’s mission and vision, and set objectives for managers and employees to follow when achieving these goals. DECENTRALIZATION: Decentralization is process of planning and decision making equally from low level managers to top level managers as well as the head of the organization. The lower level employees also play a role in planning and decision making. ADVANTAGES: ➢ Decentralization relieves the top executives burden by performing various functions. ➢ Decentralization ensures better control and supervision as the subordinates at the lowest levels will have the authority to make independent decisions. ➢ In decentralization decision making is a quick process. SENARIO-1: An assumption is made that a large organization has long and successful background of centralized organization in which I have selected as a top-level manager and decided to change the organization into decentralized
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