Question

Distinguish between centralisation and decentralisation.

Answer 1

Following are the differential factors between Centralisation and Decentralisation.

Basis of Difference	Centralisation	Decentralisation
Authority	Authority remains concentrated only in few hands at the higher level of management.	Authority is delegated to lower levels of management.
Creativity	Restricts creativity of middle and lower level managers.	Promotes creativity and innovation at all the levels.
Work Load	Higher work load on the top level managers.	Lesser workload as sharing of authority and responsibility is done.
Scope of Delegation	Scope of delegation is limited as power is concentrated in a few hands.	Wider scope of delegation as authority can be transferred.
Subordinate Initiative	Limits the scope of initiatives by subordinates as the workers have to work on the pre-decided path.	Encourages the subordinates to come forward and take initiative as they are allowed the needed freedom for working.
Decision Making	The decision making is slowed down as the power lies only with the top management. The problem has to pass through different levels before an action is taken.	The decision making is quick as the authority lies near the actual action.