Steemkids Crypto Academy// week3// Decentralization and Centralization by @viviandaniella
Define Decentralization and Centralization
Decentralization
It has to do with transfer of some important activities which includes planning, decision making, and other relevant activities that involves a company or organization to other people in the organization. Important activities are not regulated or controlled by one person or group of persons. People employ decentralization for different reasons, such as
• to aid swift decision making for the benefit of the organization
• to also enhance transparency
Centralization.
This could be seen as an opposite of decentralization. It is the process where by a single body or group of persons controls all the activities of an organization. Every decisions, or planning must come from the centralized body before it is carried out by other members of the organization.
kindly list their differences
| Centralization | Decentralization |
|---|---|
| Slow decision making process | swift decision making process. |
| Only senior management have power | both middle and lower members have power |
| Mostly applied in small organization | it is applied in large organizations |
| Communication process is vertically aligned | There is free flow of communication |
| organization has less or no proper control | organization is properly controlled |
List the 5 advantages and disadvantages of both a centralized and Decentralized system
Advantages of Decentralization
• it helps to ease burden on top officials
• it helps those in lower positions to display their talents
• workers are motivated to do their best,since they are carried along in decision making
• There is better control and supervision
• swift decisions are taken.
Disadvantages of Decentralized system
• lack of uniform policies
• it actually leads to waste of resources
• most times, emergency decisions cannot be taken
• it is very expensive to run a decentralized system
• it is difficult to coordinate a decentralized system
Advantage of Centralized system
• it is less expensive to run
• chain of command is very clear
• decisions are implemented quickly
• activities carried out are in uniform
• individuals are specialized only to what they can do.
Disadvantages of centralized system
• it can lead to disunity
• leads to decrease in productivity
• most officials work under pressure and are over burdened
• Delay in work
• it is very difficult to keeps secrets in a centralized system.
Hello @viviandaniella
we appreciate your participation in week 3 of steemkids crypto academy and your efforts to do this weeks assignment.
Your writeup was beautiful, and your presentation was very clear.
Your grade for this weeks assignment is 8.5/10
Thanks once more for being a part of this project. Looking forward to your entry for week 4.