What Are Advantages Of Centralization? - Fixanswer

Advantages Disadvantages	Prevents other parts of the business from becoming too independent Local or junior managers are likely to much closer to customer needs	Easier to co-ordinate and control from the centre – e.g. with budgets Lack of authority down the hierarchy may reduce manager motivation

What are the pros and cons of centralization?

It employs standardization of work. ...
It ensures unbiased work allocation. ...
It promotes flexibility. ...
It does not allow replication of work. ...
It offers an area of specialization. ...
It encourages dictatorship. ...
It brings out the negatives in an administrative system. ...
It is seen as inflexible.

What are disadvantages of centralization?

Centralized control of a business can have several downsides, including stifled creativity , limited communication, inflexible decision-making, and the danger of losing a key decision-maker.

What is an example of centralization?

Centralization is a business structure in which one individual makes the important decisions (such as resource allocation) and provides the primary strategic direction for the company. ... Apple is an example of a business with a centralized management structure.

What are the features of centralization?

#1. Top management: ...
#2. Authority to make a decision is in the hand of top management only: ...
#3. Information flows from the upper level to lower levels: ...
#4. Longer time to make decisions: ...
#5. Centralization is suitable for a small organization: ...
#6. Inflexible in nature: ...
#1. ...
#2.

Does decentralization achieve more positive effects?

It appears from the positive outcome that decentralization has increased access of the people to local resources previously held by the central government ; have improved participation and enlarged the capacity of the local administration and that national administration increasingly take account of the regional and ...

What are the advantages of decentralization of power?

(i) Conflict are reduced when the power is shared between centre and states and local government . (ii) a large number of problems and issues can be best settled at the local level. (iii) People have better knowledge of their own problems in their localities.

What is meant by centralization?

Centralization means bringing things to one central place or under unified control . ... When centralization occurs in a government, it means a small group increasingly controls everything; the disadvantage to extreme centralization is that there aren’t enough checks and balances to that power.

Which is better decentralization or centralization?

Competency of Organizational Personnel: If there are adequate number of capable personnel in an organization, who can take decisions quickly, decentralization works effectively. On the other hand, if management personnel are followers and lack initiative, centralization of authority is preferred.

When should centralized decision making be used?

When Standards and Uniformity Matter

One overall authority in areas such as payroll, procurement, legal, quality assurance, and safety can often improve economies of scale with centralized decision making.

What are the disadvantages of a centralized government?

Another disadvantage of a centralized system of government is that there is too much work load on the central government . This is due to the fact that it does not share its functions with any other level of power in order to lighten work at the centre, so all the work is done only at the centre.

What is difference between centralization and decentralization?

The difference between Centralization and Decentralization is that centralization in an organization involves planning and decision-making power is given completely in the hands of senior management . ... Decentralization in an organization involves the delegation of power by middle management or lower management.

What are the two types of decentralization?

The most complete forms of decentralization from a government’s perspective are privatization and deregulation , because they shift responsibility for functions from the public to the private sector.

What is Decentralisation with example?

Example of Decentralisation

When a particular person holds a chain of hotels as his business , he particularly focuses on using decentralised structures so that local hotel managers and assistants are empowered to make on-the-spot decisions to handle customers – problems, complaints and requirements.