Question

Differentiate between centralization of authority and decentralization of authority.

Answer 1

Point of difference	Centralization	Decentralization
(i) Meaning	It refers to the concentration of power or authority’ at a 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 action.