What Is Centralized and Decentralized Authority
Centralization of Authority Means the Power of Planning and Decision Making Are Exclusively in the Hands of Top Management. … on the Other Hand...
Centralization of authority means the power of planning and decision making are exclusively in the hands of top management. … On the other hand, Decentralization refers to the dissemination of powers by the top management to the middle or low-level management.
In centralization, the higher positions of the management hold the decision-making authority. Further, in decentralization, the management disperses the decision-making authority across the organization and brings it closer to the source of action and information.
What is an example of decentralized?
In a decentralized organization, lower levels in the organizational hierarchy can make decisions. An example of a decentralized organization is a fast-food franchise chain. Each franchised restaurant in the chain is responsible for its own operation.