What is Centralisation ?
Centralisation denotes that a majority of the decisions having to do with the work being performed are not
made by those doing the work being performed are not made by those doing the work but at a point higher in the organisation. every thing that goes to increase the importance of the subordinate's role is decentralisation, everything which goes to reduce it is centralisation.
Centralisation represents certain attitudes and approaches which the management follows. The major implication of Centralisation is the reservation of decision-making power in regard to planning, organising, directing and control at the top level.
Definition of Centralisation
Following are the some definition of Centralisation :-
- According to the Henry Fayol, "Everything that goes to increase the importance of the subordinates' role is decentralisation and everything which goes to reduce it is Centralisation."
- According to Louis A. Allen, "Centralisation is the systematic and consistent reservation of auithority at central points in the organisation."
Explain the Characteristics of Centralisation ?
Characteristics of Centralisation :-
Following are the Characteristics of Centralisation
- Almost all the authority to take decision is kept reserved at the top level.
- The role of the suboridinates gets no importance and their main job is to implement the decisions.
- Process of delegation of authority is used to the minimum.
- Distance between the place of work and the place where decision are taken.