Question
What do you understand by centralisation and decentralisation? What are the advantages of decentralisation?
Answer :
Word Count : 447
Centralisation refers to a system of organisational structure in which decision-making authority is concentrated at the top level of management. In this arrangement, the top executives retain most of the power, and lower-level employees have little authority to make decisions independently. This ensures uniformity, strict control, and clear direction throughout the organisation. Centralisation is often preferred in smaller organisations, in situations requiring quick and unified decisions, or when the business environment demands tight supervision. Under centralisation, information typically flows upward for approval, and instructions flow downward for implementation, creating a structured chain of command. Decentralisation, on the other hand, refers to the dispersal of decision-making authority to lower levels of management. _____ _______ ___ _________ _____.
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Centralisation refers to a system of organisational structure in which decision-making authority is concentrated at the top level of management. In this arrangement, the top executives retain most of the power, and lower-level employees have little authority to make decisions independently. This ensures uniformity, strict control, and clear direction throughout the organisation. Centralisation is often preferred in smaller organisations, in situations requiring quick and unified decisions, or when the business environment demands tight supervision. Under centralisation, information typically flows upward for approval, and instructions flow downward for implementation, creating a structured chain of command. Decentralisation, on the other hand, refers to the dispersal of decision-making authority to lower levels of management. _____ _______ ___ _________ _____.
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