Whats The Difference Between Centralized And Decentralized Systems Of An Organization?
Centralized Versus Decentralized: The terms “centralized” and “decentralized” are important management concept. Often, they are used to refer to the distribution of authority and decision making with in an organization. Centralized Organizations: They are firms in which all the major decisions are made at the top of the organization hierarchy. In such organization, people at the top are in control of day-to-day operations. In the year when founder Henry ford was running the Ford Motor Company, the auto manufacturer was a very centralized organization. Every key decision –and many less important ones was made directly by Mr. Ford. For example, he insisted on approving all purchase order within the firm, a task that most CEOs of his stature delegated to subordinates. Today, Ford Motor Company is run quite differently than it was during its early years when Henry Ford was there, but many businesses (especially smaller ones) are still run in highly centralized manners. Decentralized organi
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