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Question

Can a large sized organisation be totally centralised or decentralised?


Solution

Every organisation must have a blend of centralisation and decentralisation. While complete centralisation implies the concentration of authority in a few hands, complete decentralisation implies greater autonomy to the lower levels of management. Therefore, an organisation cannot be completely centralised or decentralised. As an organisation grows, there is a tendency to move towards decentralisation. At the same time, decisions need to be centralised in priority and Key Result Areas(KRAs).

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