When is Centralization of Decision-making Better?

Centralization and Decentralization
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Navdeep Diwan
Analyst, India

When is Centralization of Decision-making Better?

Please tell me the circumstances under which centralization is better than decentralization? Thanks

Student (MBA), United Kingdom

Centralization and Decentralization

In small organization centralization is best and in large organization decentralization is best because top management cannot get bet information from all over the organization.


When is Centralization Better

When you have sound policies and robust process flows, you can go for centralization.

  Alexandra Boateng
Manager, Ghana

What Types of Decisions are Most Appropriate to Be Handled by Decentralized Units?

As a company expands, control becomes difficult. Decision-making is delayed and the qualities of decisions taken are adversely affected. Decentralization can improve the decision-making process in terms of speed and quality of the decisions. This also provides managers with greater freedom, thus making their activities more challenging and providing the opportunity to achieve self-fulfillment.
Explain the types of decisions that are most appropriate to be handled by decentralized units as against those that should be centralized.

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