Professional Documents
Culture Documents
Factors Affecting Centralisation and Decentralisation: Presented By:-Himanshu Sharma
Factors Affecting Centralisation and Decentralisation: Presented By:-Himanshu Sharma
affecting
centralisation
and
decentralisation
Presented by:-
Himanshu sharma
Content:-
• Meaning of centralisation.
• Advantages of centralisation.
• Meaning of decentralisation.
• Advantages of decentralisation.
• Factors affecting centralisation and decentralisation.
Centralisation
• “Centralization is the systematic and
consistent reservation of authority at
central points within an organization”.
-Louis A. Allen
• Control and decision-making reside at
the top level of management
advantages
• Reduced cost—The standardised procedure and
method helps in considerably reduction of office cost.
Office cost is reduced as it does not emphasizes on
more specialists, and more departmental machines and
equipment.
-LOUIS A. ALLEN
• DECENTRALISATION REFERS TO EVERYTHING
THAT GOES TO INCREASE THE IMPORTANCE
OF SUBORDINATES.IN THE OTHER WORDS IT
MEANS THE DISPERSION OF AUTHORITY OVER
THE ORGANISATION.
Advantages
• Reduces the burden on top executives:- decentralisation
relieves the top executives of the burden of performing various
functions. Centralisation of authority puts the whole responsibility on
the shoulders of an executive and his immediate group. This reduces
the time at the disposal of top executives who should concentrate on
other important managerial functions.