1. Decentralizationkey_id304145_size480.jpg
a. Definition: practice of delegating many important decisions to middle and lower-level managers

b. Connotes dispersal of facilities, participative processes for setting organizational goals (such as management by objectives-MBO) or profit centers that focus attention on performance and results

c. Advantages: increased motivation and morale, timely response to demands or problems, speedy decision making

d. Disadvantage: potential for harmful errors
-Centralization:

Centralization (or centralisation) is the process by which the activities of an organization, particularly those regarding decision-making, become concentrated within a particular location and/or group.

In political science, this refers to the concentration of a government’s power - both geographically and politically, into a centralized government.(Wiki)

2. Trends: improved information processing allows increased decentralization of decision-making authority, with simultaneous centralization of financial and decisional control.

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