La Centralization vs Decentralization.

Centralization vs Decentralization

For many years businesses have a problem of decide which type of organization design they want, people confuse the level of authority of the members of the organization so for that it was created the hierarchy authority but, there are many ways of interpret this level of authority that this hierarchy gives to us. The interpret of the same is depending on how the power of decisions is given to the employees of an organization. The power of decisions could be given only for the top of the hierarchy (Centralization) or could be given or delegated by the top to middle and lower level (Decentralization) so, I will do an analyze for the two sides and respond if Do any of these types of organizational structure better than the other one?

 We are talking about centralization when exist a concentration of management and decision-making power only for the managers of the top of the hierarchy that means that the power of decision is only in few hands that means that not everyone could make decisions in the organization that have this organizational structure. This organizational structure has it benefits like easy coordination because when decisions are made at a high level that means of the people in charge of it, it is easy to ensure that everyone acts together, no one could change what is already decide because no one have that power to do it and people only obey the tasks of what they have to do and this make the organization effectiveness but, this organizational structure has also disadvantages like less creativity   because the employees do not have that decision-making power, this make employees do not share knowledge at all because the ones that has that possibility are the top hierarchy managers, also this organizational design has that disadvantage of limited communication because employees the most of the time have to communicate with the top managers via email, this create degree of interaction.

We are talking about decentralization when daily operations and decision-making responsibilities are given to all the management of the organization this means that involucrate top, middle and low management, this makes that top management focus more on major decisions and delegated the other decision to the middle and low management. Obviously, this organizational structure has its advantages like empowering employees because having more autonomy to make their own decisions make an impression to them a sense of importance and making them feel as they have more input in the direction of the organization. This empowering employee allows them to make better use of the knowledge and gained experiences for implement new ideas. But, also this organizational structure has it disadvantages like less control because this organizational structure is more liberal that means that you must put your faith in others to continue carry out your company’s mission and vision, also could be the case that employees abuse of that permission of decision or autonomy.

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