1.

Differentiate between centralization of authority and decentralization of authority.

Answer»

Difference between Centralization and Decentralization.

Point of differenceCentralizationDecentralization
(i) MeaningIt refers to concentration of power or authority’ at higher level only.It refers to every distribution of powers and authority at every level of management.
(ii) Authority at different levelsTop management retains maximum authority. The authority with middle and lower management is very low.The authority is systematically divided at every level.
(iii) SuitableIt is suitable for small scale and small size organisations.It is suitable for large scale organisations.
(iv) Freedom of ActionsManagers have less freedom of actionsManagers have more freedom of actions.


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