SlideShare ist ein Scribd-Unternehmen logo
1 von 8
Downloaden Sie, um offline zu lesen
Centralization & Decentralization
          Of Authority
• “Centralization” is the systematic and
  consistent reservation of authority at central
  points in the organization.
• The implication of centralization can be :-
 Reservation of decision making power at
  top level.
 Reservation of operating authority with the
  middle level managers.
 Reservation of operation at lower level at
   the directions of the top level.
Different Kinds of Centralization
• Centralization of performance
• Departmental centralization
• Centralization of management
• Decentralization is a systematic delegation of
  authority at all levels of management and in
  all of the organization.
• “Everything that increasing the role of
  subordinates is decentralization and that
  decreases the role is centralization”
• Authority in retained by the top management
  for taking major decisions.
• Decentralization pattern is wider is scope.
Implication of Decentralization
• Less burden on the Chief Executive as in the
  case of centralization.
• Subordinates get a chance to decide and act
  independently.
• Operations can be coordinated at divisional
  level.
• Co-ordination to some extent is difficult to
  maintain.
Advantage of Centralized
          Organizational Structure
•   Focused Vision
•   Fast Execution
•   Reduced Conflict
•   Control and Accountability
Advantage of Decentralized
         Organizational Structure
•   Empowering Employees
•   Relieving the Burden
•   Preparing for Emergencies
•   More Efficient Decision-Making
•   Ease of Expansion
Centralization & decentralization of authority

Weitere ähnliche Inhalte

Was ist angesagt?

Factors affecting organisational structure
Factors affecting organisational structureFactors affecting organisational structure
Factors affecting organisational structureScholarsPoint1
 
Advantages of Decentralization
Advantages of DecentralizationAdvantages of Decentralization
Advantages of DecentralizationKẹo Ngọt
 
Types of organization
Types of organizationTypes of organization
Types of organizationjean parungao
 
Centralization and decentralization
Centralization and decentralizationCentralization and decentralization
Centralization and decentralizationKumar
 
Departmentalization in an Organization
Departmentalization in an OrganizationDepartmentalization in an Organization
Departmentalization in an OrganizationAziz Zaman
 
Departmentalization
Departmentalization Departmentalization
Departmentalization Fawad Ahmad
 
Organizational Structure and Design
Organizational Structure and DesignOrganizational Structure and Design
Organizational Structure and Designabisek123
 
Delegation and decentralization
Delegation and decentralizationDelegation and decentralization
Delegation and decentralizationDurgesh S
 
ORGANIZATIONAL STRUCTURE AND DESIGN
ORGANIZATIONAL STRUCTURE AND DESIGNORGANIZATIONAL STRUCTURE AND DESIGN
ORGANIZATIONAL STRUCTURE AND DESIGNPRANAV U P
 
Line and staff organization
Line and staff organizationLine and staff organization
Line and staff organizationArchana Rawat
 
Organizational Structure : Types and Classification
Organizational Structure : Types and ClassificationOrganizational Structure : Types and Classification
Organizational Structure : Types and ClassificationSanchit
 
Presentation on Organization
Presentation on OrganizationPresentation on Organization
Presentation on OrganizationSadia Textile
 
Difference between delegation and decentralization
Difference between delegation and decentralizationDifference between delegation and decentralization
Difference between delegation and decentralizationrsrenjima
 
Organizational Structure
Organizational StructureOrganizational Structure
Organizational StructurePreeti Bhaskar
 
Ch 9 organizational structure and design
Ch 9 organizational structure and designCh 9 organizational structure and design
Ch 9 organizational structure and designNardin A
 

Was ist angesagt? (20)

Departmentation
DepartmentationDepartmentation
Departmentation
 
Ppt on organising
Ppt on organisingPpt on organising
Ppt on organising
 
Factors affecting organisational structure
Factors affecting organisational structureFactors affecting organisational structure
Factors affecting organisational structure
 
Advantages of Decentralization
Advantages of DecentralizationAdvantages of Decentralization
Advantages of Decentralization
 
Types of organization
Types of organizationTypes of organization
Types of organization
 
Centralization and decentralization
Centralization and decentralizationCentralization and decentralization
Centralization and decentralization
 
Departmentalization in an Organization
Departmentalization in an OrganizationDepartmentalization in an Organization
Departmentalization in an Organization
 
Departmentalization
Departmentalization Departmentalization
Departmentalization
 
Types of Organisation
 Types of Organisation Types of Organisation
Types of Organisation
 
Organizational Structure and Design
Organizational Structure and DesignOrganizational Structure and Design
Organizational Structure and Design
 
Delegation and decentralization
Delegation and decentralizationDelegation and decentralization
Delegation and decentralization
 
ORGANIZATIONAL STRUCTURE AND DESIGN
ORGANIZATIONAL STRUCTURE AND DESIGNORGANIZATIONAL STRUCTURE AND DESIGN
ORGANIZATIONAL STRUCTURE AND DESIGN
 
Delegation of Authority
Delegation of Authority Delegation of Authority
Delegation of Authority
 
Line and staff organization
Line and staff organizationLine and staff organization
Line and staff organization
 
Organizational Structure : Types and Classification
Organizational Structure : Types and ClassificationOrganizational Structure : Types and Classification
Organizational Structure : Types and Classification
 
Presentation on Organization
Presentation on OrganizationPresentation on Organization
Presentation on Organization
 
Control process
Control processControl process
Control process
 
Difference between delegation and decentralization
Difference between delegation and decentralizationDifference between delegation and decentralization
Difference between delegation and decentralization
 
Organizational Structure
Organizational StructureOrganizational Structure
Organizational Structure
 
Ch 9 organizational structure and design
Ch 9 organizational structure and designCh 9 organizational structure and design
Ch 9 organizational structure and design
 

Ähnlich wie Centralization & decentralization of authority

Pinakini unit 3 organising.pptx
Pinakini unit 3 organising.pptxPinakini unit 3 organising.pptx
Pinakini unit 3 organising.pptxPinakiniyu
 
factors affecting centralisation and decentralisation.ppt
factors affecting centralisation and decentralisation.pptfactors affecting centralisation and decentralisation.ppt
factors affecting centralisation and decentralisation.pptbuddy1sharmaa
 
centralization and decentralization of authority
centralization and decentralization of authoritycentralization and decentralization of authority
centralization and decentralization of authoritySanskritiOjha
 
ITM Structure and Organizing Revised March 2022.pptx
ITM Structure and Organizing Revised March 2022.pptxITM Structure and Organizing Revised March 2022.pptx
ITM Structure and Organizing Revised March 2022.pptxdamoyskeenestcpyc
 
5.10 Decentralisation Concept : XII Business Studies
5.10 Decentralisation Concept : XII Business Studies5.10 Decentralisation Concept : XII Business Studies
5.10 Decentralisation Concept : XII Business StudiesPratap Naik
 
Decentralization vs delegation
Decentralization vs delegationDecentralization vs delegation
Decentralization vs delegationSandeep Bhat
 
Decentralization and delegation
Decentralization and delegationDecentralization and delegation
Decentralization and delegationyashaswini sharma
 
Presentation (org str)
Presentation (org str)Presentation (org str)
Presentation (org str)Haseeb Tayyab
 
Presentation (organizational structure)
Presentation (organizational structure)Presentation (organizational structure)
Presentation (organizational structure)Haseeb Tayyab
 
Decentralization
DecentralizationDecentralization
DecentralizationRon Razo
 
Centralisation & decentralisation
Centralisation & decentralisationCentralisation & decentralisation
Centralisation & decentralisationDr. Ravneet Kaur
 
Centralization & Decentralization
Centralization & DecentralizationCentralization & Decentralization
Centralization & DecentralizationFermila Yousaf
 
Centralisation and Decentralisation
Centralisation and DecentralisationCentralisation and Decentralisation
Centralisation and DecentralisationRavinder Kapri
 
Centralization & decentralization of authority
Centralization & decentralization of authorityCentralization & decentralization of authority
Centralization & decentralization of authoritySiddharth Gupta
 
Centralization, decentralization & formalization
Centralization, decentralization & formalizationCentralization, decentralization & formalization
Centralization, decentralization & formalizationMalay Patel
 
FOUNDATIONS OF ORGANIZATION STRUCTURE.pptx
FOUNDATIONS OF ORGANIZATION STRUCTURE.pptxFOUNDATIONS OF ORGANIZATION STRUCTURE.pptx
FOUNDATIONS OF ORGANIZATION STRUCTURE.pptxRIAKURNIAWATI11
 

Ähnlich wie Centralization & decentralization of authority (20)

Organizing
OrganizingOrganizing
Organizing
 
Pinakini unit 3 organising.pptx
Pinakini unit 3 organising.pptxPinakini unit 3 organising.pptx
Pinakini unit 3 organising.pptx
 
factors affecting centralisation and decentralisation.ppt
factors affecting centralisation and decentralisation.pptfactors affecting centralisation and decentralisation.ppt
factors affecting centralisation and decentralisation.ppt
 
CENTRALIZATION.pptx
CENTRALIZATION.pptxCENTRALIZATION.pptx
CENTRALIZATION.pptx
 
centralization and decentralization of authority
centralization and decentralization of authoritycentralization and decentralization of authority
centralization and decentralization of authority
 
ITM Structure and Organizing Revised March 2022.pptx
ITM Structure and Organizing Revised March 2022.pptxITM Structure and Organizing Revised March 2022.pptx
ITM Structure and Organizing Revised March 2022.pptx
 
5.10 Decentralisation Concept : XII Business Studies
5.10 Decentralisation Concept : XII Business Studies5.10 Decentralisation Concept : XII Business Studies
5.10 Decentralisation Concept : XII Business Studies
 
Decentralization vs delegation
Decentralization vs delegationDecentralization vs delegation
Decentralization vs delegation
 
Decentralization and delegation
Decentralization and delegationDecentralization and delegation
Decentralization and delegation
 
Presentation (org str)
Presentation (org str)Presentation (org str)
Presentation (org str)
 
Presentation (organizational structure)
Presentation (organizational structure)Presentation (organizational structure)
Presentation (organizational structure)
 
Organising
OrganisingOrganising
Organising
 
Decentralization
DecentralizationDecentralization
Decentralization
 
Centralisation & decentralisation
Centralisation & decentralisationCentralisation & decentralisation
Centralisation & decentralisation
 
Centralization & Decentralization
Centralization & DecentralizationCentralization & Decentralization
Centralization & Decentralization
 
Centralisation and Decentralisation
Centralisation and DecentralisationCentralisation and Decentralisation
Centralisation and Decentralisation
 
Centralization & decentralization of authority
Centralization & decentralization of authorityCentralization & decentralization of authority
Centralization & decentralization of authority
 
Centralization, decentralization & formalization
Centralization, decentralization & formalizationCentralization, decentralization & formalization
Centralization, decentralization & formalization
 
Unit 4 organising
Unit 4 organisingUnit 4 organising
Unit 4 organising
 
FOUNDATIONS OF ORGANIZATION STRUCTURE.pptx
FOUNDATIONS OF ORGANIZATION STRUCTURE.pptxFOUNDATIONS OF ORGANIZATION STRUCTURE.pptx
FOUNDATIONS OF ORGANIZATION STRUCTURE.pptx
 

Mehr von anandlihinar

Personal selling &sales management
Personal selling &sales managementPersonal selling &sales management
Personal selling &sales managementanandlihinar
 
Listening and speaking skills
Listening and speaking skillsListening and speaking skills
Listening and speaking skillsanandlihinar
 
Bank of america merrill lynch
Bank of america merrill lynchBank of america merrill lynch
Bank of america merrill lynchanandlihinar
 
Supply chain management ppt
Supply chain management pptSupply chain management ppt
Supply chain management pptanandlihinar
 
Electrical equipment ltd
Electrical equipment ltdElectrical equipment ltd
Electrical equipment ltdanandlihinar
 
Basics of derivatives
Basics of derivativesBasics of derivatives
Basics of derivativesanandlihinar
 

Mehr von anandlihinar (7)

Personal selling &sales management
Personal selling &sales managementPersonal selling &sales management
Personal selling &sales management
 
Listening and speaking skills
Listening and speaking skillsListening and speaking skills
Listening and speaking skills
 
Bank of america merrill lynch
Bank of america merrill lynchBank of america merrill lynch
Bank of america merrill lynch
 
Supply chain management ppt
Supply chain management pptSupply chain management ppt
Supply chain management ppt
 
Electrical equipment ltd
Electrical equipment ltdElectrical equipment ltd
Electrical equipment ltd
 
Deriv basics
Deriv basicsDeriv basics
Deriv basics
 
Basics of derivatives
Basics of derivativesBasics of derivatives
Basics of derivatives
 

Centralization & decentralization of authority

  • 2. • “Centralization” is the systematic and consistent reservation of authority at central points in the organization. • The implication of centralization can be :-  Reservation of decision making power at top level.  Reservation of operating authority with the middle level managers.  Reservation of operation at lower level at the directions of the top level.
  • 3. Different Kinds of Centralization • Centralization of performance • Departmental centralization • Centralization of management
  • 4. • Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. • “Everything that increasing the role of subordinates is decentralization and that decreases the role is centralization” • Authority in retained by the top management for taking major decisions. • Decentralization pattern is wider is scope.
  • 5. Implication of Decentralization • Less burden on the Chief Executive as in the case of centralization. • Subordinates get a chance to decide and act independently. • Operations can be coordinated at divisional level. • Co-ordination to some extent is difficult to maintain.
  • 6. Advantage of Centralized Organizational Structure • Focused Vision • Fast Execution • Reduced Conflict • Control and Accountability
  • 7. Advantage of Decentralized Organizational Structure • Empowering Employees • Relieving the Burden • Preparing for Emergencies • More Efficient Decision-Making • Ease of Expansion