Centralization refers to the concentration of decision-making authority and control within a single entity or a small group, allowing for streamlined processes and uniformity in governance. In contrast, decentralization distributes power and decision-making across multiple entities or individuals, promoting autonomy and flexibility. This can lead to increased innovation and responsiveness, as local units can adapt to their specific contexts. Both approaches have their advantages and disadvantages, depending on the goals and structure of an organization or system.