What is Centralization?
Centralization refers to the concentration of authority at the top level of the organisation. It is the systematic and consistent reservation of authority at the central points within an organisation. In a centralized organisation, managers at the lower level have a limited role in decision-making. They just have to execute the orders and decisions of the top level.
Difference between Centralization and Decentralization
According to Henri Fayol,” Everything which goes to increase the importance of a subordinate’s role is decentralization, everything that goes to reduce it is centralization”.