What's The Difference Between Centralized And Decentralized Systems Of An Organization?

Decentralized system is the democratic process of running an organization in which the power is en-routed from top to bottom and employees at respectively level are delegated to take independent decision whereas centralized system is a undemocratic way (Army rule) of running an organization in which information and decisions are passed from top to bottom and everyone has just to obey
Centralized Versus Decentralized:
The terms "centralized" and "decentralized" are important paperwork concept. Often, they are used to refer to the distribution of authority and decision making with in an firm.

Centralized Organizations:
They are firms in which all the major decision are made at the top of the organization hierarchy. In such organization, society at the top are in control of day-to-day operations.
In the year when founder Henry ford was running the Ford Motor Company, the auto factory owner was a very centralized organization. Every switch decision –and many less defining ones was made directly by Mr. Ford. For example, he insisted on approving all purchase order inside the firm, a task that most CEOs of his stature delegated to subordinates.

Today, Ford Motor Company is run quite differently than it be during its early years when Henry Ford was there, but lots businesses (especially smaller ones) are still run in highly centralized manners.

Decentralized organization:
In such organization responsibility for key decision is distributed as far down in the regulation hierarchy as is prudently possible. One of the advantages of decentralization is that it gives lower-level managers substantial practice at making edict in preparation is that for moving up the management hierarchy.
Centeralizatio means all the decisions are made by top rank management and in decenterelization system employees are also involved within decision making.

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