What is Centralization and De-Centralization of the Authority?

Centralization of the Authority
After the delegation of the authority, the delegation of the decision making is obtained and consequently after this, the acts for the implementation are very much required. So it can be said that the authority for taking the decisions can be spread with the help of the delegation of the authority.

The centralization of the authority can be done with – in a few seconds, if complete concentration is given on the decision making at any position. This concept is generally referred to as the centralization of the authority. The centralization can be done with a position or at a level in an organization. Hence, it can be said that the extension of the organization is referred to as the centralization of the authority. Here the decision making must be concentrated in a few hands.

The advantages of the centralization of the authority can be summarized as the follows –
1. Very high speed.
2. Well defined responsibility.
3. Depends largely on the general consensus.
4. Decision making is very clear.

De–Centralization of the Authority
In an organization, the decentralization of the authority can be referred to as allowing the large number of the persons within an organization to take the decisions. In the decentralization of the authority, no concentration is given on the decision making.

The major disadvantages of the decentralization of the authority can be summarized as the follows –
1. General slackness in the discipline.
2. Too much meddling in the process.
3. Existence of the political culture.
4. Loss in the effectiveness.