How are you everyone?Today I will discuss with you about Difference Between Centralization and Decentralization. I will try to highlight my experience. I am young and my experience is very little so please forgive me if there are any mistakes.

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Centralization refers to the concentration of authority at the top level of the organization. It is the systematic and consistent reservation of authority at central points in an organization. In a centralized organization, lower level managers have a limited role in decision making. They only have to implement the orders and decisions of the top level.
What is decentralization?
Decentralization means dispersion of authority throughout the organization. It refers to a systematic attempt to delegate all authority to the lowest level except that which can be exercised at central points. It is the distribution of authority throughout the organization. In a decentralized organization, major decision authority is vested in top management and balance authority is delegated to middle and lower levels.

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Below are 3 differences between centralized and decentralized structures:

1. Speed ​​of decision making
   Small and emerging businesses can benefit from power consolidation, as it helps speed up decision-making. A centralized organizational structure can sometimes inhibit input from others.
   Decentralization is ideal for large companies that have a national or multinational presence It can also be good for a business that makes a variety of products that require different industry skills to properly manufacture, sell, and market. Companies that are leaders in their field adopt a more decentralized model due to the scope of their production output.
2. Creating ideal internal metrics
   When creating internal performance metrics for a company, it is easier to create a standardized format in a centralized system. A top-down management structure allows a company to integrate communication and reporting standards with minimal scope for deviation. If the success metrics are fairly straightforward, it may be more beneficial to focus on an organizational structure.

A decentralized system allows individual departments or teams to decide on their reporting methods, which may work well in companies with different product lines. Enforcing proactive communication between managers and executives can help answer questions that arise in reports to reduce confusion about performance results. New industries can also benefit from decentralization, as it can be helpful to have more adaptive performance metrics.

1. Relationship with customers
   If a business wants to develop direct relationships with its customers, it may experience greater success with a decentralized structure because there are fewer limitations regarding communication and outreach. The ability to optimize social media channels to their full potential is a prominent feature of decentralization as it allows companies to communicate with multiple geographic markets with minimal inconvenience. Online customer service via email or social media is easy to perform with flexible behavior guidelines.
   Centralized organizational structures often have specific policies regarding interaction with the public, allowing them more control over their brand image. Companies in industries such as children's media or baby products usually communicate with the public through a strong public relations team. For complaints, they may have an in-house customer service team with detailed knowledge and experience rather than an automated online syste.
   Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all. Everyone stay well stay healthy stay with Steemit.