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Differentiate Between Centralization of Authority and Decentralization of Authority. - Commerce

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Answer in Brief

Differentiate between centralization of authority and decentralization of authority.

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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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