CENTRALIZATION AND DECENTRALIZATION
It is the process of transferring and assigning decision-making
authority to higher levels of an organizational hierarchy. The span of control
of top managers is relatively broad, and there are relatively many tiers in the
Philosophy / emphasis on: top-down
control, leadership, vision, strategy.
authoritarian, visionary, charismatic.
Organizational change: shaped by top,
vision of leader.
Execution: decisive, fast,
coordinated. Able to respond quickly to major issues and changes.
Uniformity. Low risk of dissent or
conflicts between parts of the organization.
Advantages of Centralization
Power and prestige for manager
of policies, practices and decisions
extensive controlling procedures and practices
duplication of function
Disadvantages of Centralization
functions for mid. Level, and less motivated beside personnel.
supervisor functions as a link officer between nursing director and first-line
It is the
process of transferring and assigning decision-making authority to lower levels
of an organizational hierarchy. The span of control of top managers is
relatively small, and there are relatively few tears in the organization,
because there is more autonomy in the lower ranks.
Philosophy / emphasis on: bottom-up,
political, cultural and learning dynamics.
Organizational change: emerging from
interactions, organizational dynamics.
Execution: evolutionary, emergent.
Flexible to adapt to minor issues and changes.
Participation, accountability. Low
risk of not-invented-here behavior.
Three Forms of decentralization
De-concentration. The weakest form of decentralization. Decision
making authority is redistributed to
lower or regional levels of the same central organization.
Delegation. A more extensive form of decentralization.
Through delegation the responsibility
for decision-making are transferred to semi-autonomous organizations not wholly
controlled by the central organization, but ultimately accountable to it.
Devolution. A third type of decentralization is devolution.
The authority for decision-making is transferred completely to autonomous
Advantages of Decentralization
morale and promote interpersonal relationships
from the daily administration
decision-making close to action
employee’s enthusiasm and coordination
actions by lower-level managers
Disadvantages of Decentralization
administration may feel it would decrease their status
may not permit full and maximum utilization of highly qualified personnel
costs. It requires more managers and large staff
lead to overlapping and duplication of effort
and Decentralization are two opposite ways to transfer decision-making power
and to change the organizational structure of organizations accordingly.
There must be a good balance between centralization and decentralization
of authority and power. Extreme centralization and decentralization must be