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Answer» Following are the differential factors between Centralisation and Decentralisation. |
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| Basis of Difference | Centralisation | Decentralisation |
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| Authority | Authority remains concentrated only in few hands at the higher level of management. | Authority is delegated to lower levels of management. | | Creativity | Restricts creativity of middle and lower level managers. | Promotes creativity and innovation at all the levels. | | Work Load | Higher work load on the top level managers. | Lesser workload as sharing of authority and responsibility is done. | | Scope of Delegation | Scope of delegation is limited as power is concentrated in a few hands. | Wider scope of delegation as authority can be transferred. | | Subordinate Initiative | Limits the scope of initiatives by subordinates as the workers have to work on the pre-decided path. | Encourages the subordinates to come forward and take initiative as they are allowed the needed freedom for working. | | Decision Making | The decision making is slowed down as the power lies only with the top management. The problem has to pass through different levels before an action is taken. | The decision making is quick as the authority lies near the actual action. | |
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