Hello Everyone!

This is Sami Zuberi , hope you all are well. I am exceptionally hope set aside a few minutes for perusing my homework post for @yousafharoonkhan and valued it. Here i am going to impart my views on 'Centralization and Decentralization System'. So how about we begin.

Question 1.

Write the definition of decentralization and centralization in your own words. Explain these two systems in your own words.

Decentralization:

Decentralization is the process cycle by which the activities of a company or an organization, especially those with respect to arranging and decision making, are distributed or assigned away from a central, legitimate location of area or group. The process cycle of decentralization makes the lower level administrators/managers question their judgment and capacities. At the point when given responsibility and decision- making freedom, they are tested to develop solutions arrangements. Over the long haul, this does a lot of good to their confidence and promote self-reliance.

Source

Centralization:

Centralization is a business structure in which one individual settles the important decisions and gives the essential strategic key directions heading to the organization or company. And centralization refer to the process cycle where activities including planning and decision making with in an association or an organization are concentrated to a particular leader or location. In a centralized association or an organization, the decision making forces are held in the head administrative center, and any other offices get orders from the main principle office. The executives and experts who settle on basic choices are situated in the head administrative office.

Source

Question 2:

Explain in your own words the difference between decentralization and centralization system Or Compare both in own words.

Differences between Decentralization and Centralization:

Decentralization in an association or an organization includes decision making capacity through center/middle management or lower the management. Power , authority are upheld by lower executives management. While Centralization in an organization includes decision making ability in the possession of top management. It infers that all power, authority is maintained at the highest top most level. In Decentralization the no arrangement in flow of information, it is free and more open. In Centralization the flow of information is vertically aligned. In Decentralization the process of dynamic decision making is way faster. On the other hand in Centralization decision making process is comparatively slow. In Decentralization implementation in large measured size firms. While in Centralization implementation in little measured size firms. In Decentralization, a higher number of peoples from each level are associated with the process of decision making. In Centralization, only a few handpicked individuals from each level are associated with the process of decision making.

Question 3:

Write five Advantages and five Disadvantages of decentralized and centralized system.

Advantages of Decentralized System.

1. Decentralization lessens the burden of the chief executives with settling on routine decisions.

2. Decentralization helps improvement of administrative capacity which prompts an increment in their morale and this outcomes in a higher productivity.

3. Decentralization is a significant tool for fulfilling human necessities of power, freedom, status and prestige. This fulfillment helps in building a framework of satisfied managers, who feel their duty towards organization's and company work.

4. It frees the top supervisors and managers from the burden of taking too many working choices and operating decisions.

5. It is similarly simple to measure the performance of the activities at the department level. This will prompt to successful and effective control.

Disadvantages of Decentralized System:

1. Decentralization increases the issues of coordination among the different units.

2. Decentralization makes the utilization of the services of uncommonly talented individuals. In view of powerless resources, appointment of such people may not be possible.

3. Departmentalization is totally unacceptable for small firms as it includes high working operating cost expenses.

4. Every department will in general act will tend to be self centered ignoring the broader interests of other departments and that of the entire firm.

5. It increases the administrative expenses, because highly paid managers have to be appointed.

Advantages of Centralized System:

1. The management can hold a superior order or command over the subordinates and the subordinates likewise obviously realize whom to follow.

2. The top management obviously clearly defines and better comprehend the organizational vision. Accordingly, it adjusts every one of the resources, subordinates, activities and techniques towards the accomplishment of the vision.

3. The top management outlines a uniform policy for subordinates at various levels, incorporate their game-plan and guarantees coordination among every one of the subordinates.

4. The management need not spend much on the workplace means office and administrative costs in a brought centralized association.

5. The subordinates are answerable straightforwardly to the top management, and accordingly they constantly target improving the work quality.

Disadvantages of Centralized System:

1. The top management guides the everyday tasks, and the subordinates need to report directly to the senior administration or management. At time when there is no management staff, the subordinates can't take immediate decisions.

2. The centralized organization runs in an conventional way where the top management is fairly rigid with its policies, strategies and techniques. Accordingly, it makes a barrier to adopting current and improved practices for administrative development.

3. All the planning and dynamic decision making work is done at the top most level of the management, they control even the everyday tasks. Because of this reason, the management gets overburdened and can't focus on business expansion and growth development.

4. The subordinates supposed to follow guidelines while the least attention is paid towards their ideas, suggestion and feedback.

5. An individual can't have some expertise in every one of the activities alone. Consequently, in centralized system where all choices and decisions are taken by the top management, the organization lacks specialized oversight and the management.

Question 4:

Which one is better for Business/trading and why? (write in own words)

In my perception, I think both have their own importance. If an organization needs a simple to-manage system framework that permits it to apply a lot of deal authority over jobs and user access, a brought centralized network makes sense well. Decentralized system might be more hard to implement and keep maintain, yet it offers benefits regarding redundancy and security. Both sorts of networks means centralized and decentralized come up with their own performance issues to oversee. Centralized networks should have adequate ability to avoid from data transmission bandwidth, while decentralized system must be optimized to combat latency. Organization should likewise consideration their future versatility plans and plan a network that will actually grow with them over the long haul time.

Question 5:

How do you know if a blockchain is decentralized or not? You can describe any method, but in your own words.

There are some steps for checking that the blockchain is decentralized or not that professor taught us in the lecture. You can check it through a site named as etherscan there you required some company token address which helps you to access the some kind of source code in which you will find whether the blockchain is decentralized or not. On the other hand what i learned is, A blockchain can be either centralized or decentralized. It is significant, however that decentralized not be confused with distributed. While a blockchain is inherently distributed (implying that numerous parties hold duplicates of the ledger record), it is not inherently decentralized. That is one of the method to check that blockchain is centralized or not.

Conclusion:

Centralization and decentralization are the systems that have their own importance, and one can choose it in their trading or business according to their situation. Centralization refers to an arrangement where the decision making power are concentrated in some of the managers and leaders at the highest point of the organizational structure. decisions are made at the top level and imparted to bring low level managers for execution or implementations. While the important significant targets of decentralization is to advance local participation and decrease transactional expenses. These two systems have their own advantages and disadvantages as well.

Special mentions to:
Professor @yousafharoonkhan

#steemitcryptoacademy #yousafharoonkhan-s2week1 #cryptoacademy #pakistan