Answer in Brief
Differentiate between centralization of authority and decentralization of authority.
|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.|
Concept: Comparison Between Delegation and Decentralization
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