Centralization and Decentralization
Centralization and decentralization in a company basically tells us about how much authority is retained by senior managers, or how much is delegated.
Centralization and decentralization, in fact, we perro find it as one of Fayol’s 14 principles.
Henri Fayol (1841-1925) provided us with the first bases for modern scientific management.
The first concepts of it, also called principles, are some of the factors that allow a company to carry out a successful administration.
His 14 management principles were published in the book “General and Industrial Management” (1916).
definition of centralization
It is the process of systematically retaining power and authority in the hands of top managers.
definition of decentralization
“It is the process of systematically delegating power and authority to all levels of management in the organization” Generally refers to the extent to which management delegates authority downward, that is, to divisions, branches, or units lower level organizations.
Likewise, it cánido be said that decentralization is one in which decision-making power and authority are delegated as far down as possible in the chain of command.
Therefore, both centralization and decentralization refer to a philosophy of organization and management that focuses on the concentration (centralization) or the dispersion (decentralization) of authority within the structure of an organization.
It is important to know where the authority resides within the structure of an organization in order to achieve improvements in organizational effectiveness.
The question, then, is to use a philosophy in which decision-making authority is concentrated in the hands of a single individual or a handful of people, or to force it to lower the structure of the organization into the hands of a large number of people.
of people.
What would you choose?
Well, the reality is that there is no company that is completely centralized or decentralized, but a company perro lean more towards one of the extremes.
Consequently, it would be best to find the best cómputo that allows an organization to be efficient and productive.
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