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Answer» Difference between Centralization and Decentralization. | Point of difference | Centralization | Decentralization | | (i) Meaning | It 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 levels | Top management retains maximum authority. The authority with middle and lower management is very low. | The authority is systematically divided at every level. | | (iii) Suitable | It is suitable for small scale and small size organisations. | It is suitable for large scale organisations. | | (iv) Freedom of Actions | Managers have less freedom of actions | Managers have more freedom of actions. |
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