Centralization and Decentralisation Essay: Centralization is a process where several important activities like decision making and planning are conducted within an organization and are made by a specific leader or an area. In an organization that follows centralized power, the powers are in the court of a single office, and all other branches are bound to follow the orders from the main office. The specialists and the executives who are important to make the decisions are located in the head office. On the other hand, decentralization is a type of organizational configuration where the authority of management is distributed in various levels from top to low.
Regular operations require important decision-making skills, which is the responsibility of middle and lower-level executives. This allows the top-level managers to focus on a major decision like diversification or business expansion. Assigning a power and portion of work to a subordinate by a superior is known as delegation. When this is extended into an organization, the system is known as decentralization.
We have written an essay on centralization and decentralization for you in three sections. It will help you prepare for debates or speeches and even write about your examination topic. It is important to know what centralization and decentralization are and how it affects a working place. There are various advantages, and disadvantages to centralized and decentralized business strategies students need to understand and the concept and use the essay to prepare for their exams or any other work platform. Thoroughly read the report and gather details in an extensive context.
You can also find more Essay Writing articles on events, persons, sports, technology and many more.
Long and Short Essays on Centralisation and Decentralisation for Students and Kids in English
We provide children and students with essay samples on a long essay of 500 words and a short essay of 150 words on the topic “Centralization and Decentralization” for reference.
Short Essay on Centralization and Decentralization 150 Words in English
Short Essay on Centralization and Decentralization is usually given to classes 1, 2, 3, 4, 5, and 6.
Centralization and decentralization are the two different ways of an organizational system used in various corporate sectors, governmental offices, private sectors, law firms, and many more. To know which is more effective and reasonable, it is important to understand that these processes or systems are and their advantages and disadvantages.
Centralization is a management system that has the sole power to the head office or a single area. This bunch of people from the head office can make important decisions, develop strategies and incorporate them in their branch offices. This gives a better frame of the work environment and a well-designed organization. However, the only problem with that organizations is that if the head office executives make a bad decision, it will affect the entire work environment.
Decentralization is a procedure where the workplaces follow the distribution of power among various levels from top to low. This allows the team to work efficiently across multiple countries. The strategic planning, allocation of work, and execution are under the power of middle to lower-level employees. At the same time, the major decisions for the company are taken by the top management. This results in better employee work and satisfaction. This also helps the low-level employees get better leadership and become a major part of the organization’s contribution.
Centralization is a central structure of an organization where the sole power of planning, decision making, and executing is under the top management or head office. The other branches of the office will have to follow the decision of the head office executives. On the other hand, decentralization is an organizational system where every sector employee of the office gets a responsibility to make decisions and plan the execution. It is the process of delegation where a superior assigns the daily work to the subordinates. There are various advantages to centralization and decentralization. This essay on 500 words will help you analyze and make points on the two systems of work’s pros and cons easily.
Advantages of Centralization
In a centralized organization, various advantages make the office work organized and create an easy flow. We have assembled the benefits of centralization below. Clear Command- in a centralized organization, the major benefit is that every employee knows what to follow and whom you need to report to. Many new and junior employees have certain concerns and questions, and they know exactly who can help them with their queries. The senior employees follow the command of the specialists from head office who function perfectly in their role. Therefore, a perfect chain of the mandate is maintained in these organizations.
One Vision: every company has a vision and when a centralized power works, then focusing on the goal is easy and effective. This goal will also help the employees better understand their work, purpose, and policies. The suppliers and clients of the company also receive a similar message.
Cost Management: some basic methods and processes help the organization to reduce administrative and office costs. The headquarters of the company have all the necessary equipment required to run the office. It doesn’t hire extra specialists for making critical and special decisions. There are various other advantages of centralization, like implementing the decisions made by the seniors.
Advantages of Decentralization
Decentralization is one of the best organizational systems that makes everyone satisfied and happy. Less Stress on Top Management- decentralization helps the top management executives to ease at work by giving them the responsibility of planning and strategizing with the clients to middle and lower-level executives. There are various important management roles and decisions which need time to think and execute, and with decentralized power, the job is a lot easier.
Diversification at the workplace: the diversity of activities, markets, and products are possible under decentralization. If you are one of the senior executives at your centralized workplace, you will know how to modify the activities and change the lines of distribution and production.
Focus on Market and Production: Every day, new products are introduced to the market, and the customers lose interest in the previous ones. Therefore, knowing the demand of customers and the market rate and products is important to run a company. When the senior authority is distributed in different areas or countries, it becomes easier to analyse their product’s market place and make important decisions rather than depending on the head office to respond from a single area. Other than these, advantages like the growth of executives in the company, promotion of motivation to the employees, better grip and supervision, and fast decision making are best for any decentralized company.
Long Essay on Centralization and Decentralization 500 Words in English
Long Essay on Centralization and Decentralization is usually given to classes 7, 8, 9, and 10.
Centralizing a company’s power is when the central authority of the entire organization comes under a particular head office or an area. They are only responsible for making any decisions for the company and planning and executing them on their employees. However, a decentralized organization has a power distribution where the top management takes only the major company decisions. Simultaneously, the middle and lower executives are given powers to make daily decisions and changes. The delegation process where the superior delivers work to their subordinate workers is known as decentralization. There are various ways to deduct the pros and cons of the advantages and disadvantages of centralization and decentralization.
There is a simple way to understand the way an organization works in both the organizational aspects. When decision-making is under the top management, it is known as centralized management, while decentralized control is when the decision-making authority is under the company’s lower executives. Working in a centralized organization looks similar, but it is much more about the organization’s philosophy. It is also a lot more about approaching the process of making decisions. Decentralizing a company is a choice, while delegation is a necessity. Let us jump into some of the advantages and disadvantages of centralization and decentralization.
Advantages of Centralization
1. Single Source of Command: When an organization has centralized power to make decisions, it becomes easier for the employees to know whom they need to report about their work. New workers also understand whom to approach to solve their problems. When all the responsibility is given to the managers and executives, there is no confusion, and the decision is quickly made and executed impartially.
2. One Team One Goal: every employee needs to understand what they are working for. Every company has a goal to achieve, and when there is one team with power, it is easier for the employees to focus on the vision. Without centralized control, there develops a lack of consistency. The direction of workflow from the top management implements an easy flow of work and better strategies.
3. Cost-Effective: When you have a centralized power of organization control, standard methods and procedures reduce administrative costs for office operations. Since the companies, headquarters decide if there is a requirement of extra expenses, the finance is compact and under one team. The head office also consists of specialists, making it a no-go for hiring other professionals to do the job and thus reducing extra costs on duplication of authorities.
4. Implementing Decisions: the decisions made by a small group of people are easy to communicate with. Since there are only a few people involved in decision-making, it becomes easier to avoid conflicts and agree to a conclusion quickly. Centralized organizations have the benefit of easy and simple decisions within a less period.
5. Better Work Quality: When the power is centralized, the quality of work is better. Various departments are appointed under different supervisors that help the workers to perform efficiently, providing a better quality of work. Repetition of tasks can be easily avoided along with high worker costs.
Disadvantages of Centralized Management
A centralized organization has its disadvantages.
1. Administrative Leadership: The employees of centralized management are only expected to deliver their top management’s work. They are completely separated from making any organizational decisions and have a very slight chance of becoming a part of the head office. The lack of implementation of employees’ work is not understood by the management, thus lowering their motivation and performance level.
2. Limited Control: The rules’ implementation takes time and is often hard for the employees as head office makes the decision and have to abide by the authorities. It is a tedious task to implement the executives’ decisions, and they end up making poor decisions that the employees often ignore.
3. Delay- since the centralized management has the head office’s daily work, the delivery and arrival of work are both delayed. Any next move for the employees is delayed because they need to wait for the head office to respond. This results in lower employee productivity and often needs to wait for a long period to get guidance working on a new project.
4. Lack of Loyalty Among Employees- When employees do not have their say in company decisions, they automatically lose interest in what they do. Centralized power has employees only to follow commands, making them less loyal and often hamper their creativity at work.
Advantages of Decentralization:
Equally Distributed Duty: Decentralized management has the full distribution of power among its employees and top management. The higher authorities are responsible for the major decision-making process that benefits the company. At the same time, the daily decisions and implementation are taken by the central and lower authorities. This delegation process lowers the stress on single officers.
- An advantage to diversify: Making changes in activities and products as per market requirement easier in decentralized management. Since the power is equally distributed, there is no complexity in distributing work and differences among the employees.
- Noticing Market Changes and Implementation: When a new product comes into the market, it is important to analyze the customer requirements and make innovative changes in the products. This requires rendering the price, quality, and delivery services.
- Opportunity for Employees: Employees learn a lot when the power is distributed among themselves. They get a chance in the decision-making process and take the initiative for managing tasks.
- Motivates Employees: when the executives can take part in decision making and major processes, they get appreciation, which automatically boosts their confidence. It encourages the executives and automatically improves production.
Disadvantages of Decentralization
Decentralization management is best for helping the employees to grow. However, it can be a huge problem without a better structure and control. Here are some of the disadvantages of decentralization.
- Equal Procedures: Under the decentralization procedure, every manager has their way of making decisions and implementing them. This creates different rules for different people as the policies are framed based on talent.
- Co-ordination Issues: Since the rules are different for people under different managers, co-ordination among other teams is often seen as a problem.
- Financial costs Are Higher: the person gaining the authority of decision making must be trained. This automatically needs high prices, and many small startup companies cannot afford to centralized their company and appoint experts in different fields.
- Conflict- Decentralization: although it distributes power, puts a lot of stress and responsibility on the divisional heads, and they must meet profit under any circumstances. This often brings conflict among managers.
Centralisation and Decentralisation Essay Conclusion
Centralization and decentralization are two different types of business management ideas adopted by companies worldwide. They both have their advantages and disadvantages, which makes it a win-win position for the employees. We have assembled three different essays to help you understand the topic and make you ready for debates or articles.