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Describe the difference between a centralized and a decentralized management style.

Describe the difference between a centralized and a decentralized management style.

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BASIS FOR COMPARISON CENTRALIZATION DECENTRALIZATION
Meaning The retention of powers and authority with respect to planning and decisions, with the top management, is known as Centralization. The dissemination of authority, responsibility and accountability to the various management levels, is known as Decentralization.
Involves Systematic and consistent reservation of authority. Systematic dispersal of authority.
Communication Flow Vertical Open and Free
Decision Making Slow Comparatively faster
Advantage Proper coordination and Leadership Sharing of burden and responsibility
Power of decision making Lies with the top management. Multiple persons have the power of decision making.
Implemented when Inadequate control over the organization Considerable control over the organization
Best suited for Small sized organization Large sized organization
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