What do you understand by centralized and decentralized organization?

Answer 1

A centralized organization is one where decision-making authority is concentrated at the top levels of management, leading to a uniform approach and streamlined control. In contrast, a decentralized organization distributes decision-making power across various levels or departments, allowing for greater flexibility, responsiveness, and local adaptation. Centralization often results in consistent policies but can slow response times, while decentralization fosters innovation and quicker decisions but may lead to inconsistencies. The choice between the two depends on the organization's size, goals, and industry.