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Answer» Distinguish between Centralisation and Decentralisation. | Basis of Difference | Centralisation | Decentralisation | | (i) Meaning at top level | It refers to the concentration of authority. | It refers to the systematic dispersal of authority at all levels of management and in all the departments of the organisation | | (ii) Suitability where activities are scale | It is more suitable to the small businesses carried on small level. | It is more suitable to the large organisations where activities are carried on large scale and are complex in nature. | | (iii) Uniformity of decision | There is uniformity in decision making power vested at the top level. | There is no uniformity of decision making power vested at all levels. | | (iv) Authority of top management | Top management retains absolute authority | Top management retains authority for making major decision | | (v) Freedom of action | Managers have less freedom of action. | Managers have more freedom of action. | | (vi) Workload of executives | Workload of executives is more | Workload of executives is less. |
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