CENTRALIZATION AND DECENTRALIZATION PRESENTED BY GROUP NO 3

CENTRALIZATION AND DECENTRALIZATION PRESENTED BY : - GROUP NO. 3 DEBONIKA DEY (08) DEEPAAKSHI HAZARIKA (09) DEESHA BISWAS (10) SUKANYA GOGOI (28)

CONTENT �Introduction �Centralization & Its Advantages/Disadvantages �Decentralization �Factors & Its Advantages/Disadvantages Determining Degree of Decentralization �Factors Influencing Decentralization and Centralization �Conclusion �References

INTRODUCTION �An organization has to make strategic and operational decisions. �Where and by whom should these decisions be made and how should the organization structure be adapted? �Centralization and Decentralization are two opposite ways to transfer decisionmaking power and to change the organizational structure of organizations accordingly

What is Centralization? �A process where the concentration of decision making is in a few hands. �All the important decision and actions at the lower level are subject to the approval of top management

Advantages of Centralization �It provides better opportunities for development of personal leadership �It helps in quick decision making which in turn facilitates effective handling of emergency situations �It makes control easier �It allows flexibility and rapidity of adjustments to changing conditions

Disadvantages of Centralization �It increases the burden of the top executives with routine functions and hamper their development �It affects the initiative of the lower level management people �It does not provide scope for employee participation in decision making �There is no scope for specialization because an individual will have to look after many functions at a time.

What is Decentralization? �A systematic delegation of authority at all levels of management and in all of the organization �It is the process of systematically delegating power and authority throughout the organization to middle and lower-level managers

Advantages of Decentralization �Savings of Time �Greater Efficiency and Output s �Maintenance of Secrecy �Departmental Loyalty

Disadvantages of Decentralization �No Proper Division of Work �Duplication of Work �No Standardisation �Heavy Expenditure

Factors Determining the Degree of Centralization and Decentralization �Size and Complexity of the Organization �History of the Organization �Availability �Top Management Outlook �Importance �Rate of Competent Managers of a Decision of Change in the Organization

Factors Influencing Centralization and Decentralization �Relief of Excessive Workload �Prompt Decision-Making �Facilitates �Better Growth Control �Promotes Initiative and Creativity �Improved Teamwork

CONCLUSION Discussion on Centralization and Decentralization is one of the important topics these days. Some people think that centralization is better while others are in favor of decentralization. Earlier, 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. It can be said that Centralization and Decentralization are not “either–or” conditions nowadays. An appropriate balance of both is essential for effective and efficient functioning of organization.

REFERENCES � https: //mgtdiary. blogspot. com/2012/09/principle- centralisation-and_3. html � https: //www. 12 manage. com/methods_centralization_decentra lization. html � https: //www. businessmanagementideas. com/management/cen tralization-and-decentralization/centralization-anddecentralization-management/18514 � https: //www. slideshare. net/Tejas. Atyam/tejas-mgt-1