Centralization

• Centralization is a method of organizing and management

where management and decision-making powers are
concentrated in the hands of the top management of the
organization.
• Centralization allows on the one hand an unified decision
“from the center” on the other hand, limits the autonomy of
organizational units and may reduce flexibility of the
decision.
• Centralization may concern all decisions and powers, or may
be centralized only selected managerial functions.
• Use of centalization in practice: Centralization is used
during periods when it is necessary a single procedure from
a single location, such as in crisis management.
 Delegation of Authority
- Merits and Demerits
• Delegation is the assignment of any authority to
another person to carry out specific activities. It
is one of the core concepts of management
leadership. However, the person who
delegated the work remains accountable for
the outcome of the delegated work
 Merits
• Minimize Work Load Of Managers
• Benefit Of Specialization
• Motivation And Morale
• Training And Development
• Facilitates Growth And Expansion
• Quicker And Better Decision
• Basis Of Organizing
 Demerits
• Misuse of Power
• Failure to Fulfill the Tasks
• Delay
• Impact on Quality of Work