Centralisation and Decentralisation

Centralisation and Decentralisation [8]


  • Complete centralisation means that people at the bottom have no authority over their responsibilities. On the other hand, complete decentralisation means that there will be no superior authority to control the organisation. Therefore, it is vital firms maintain a healthy balance between these two components. 


  • Fayol argued that in certain situations, centralisation could be beneficial. For example, in certain organisations tasks are routine and employees need clear instructions, this authority may be needed to provide efficient control and keep uniformity within the firm. 

  • Fayol also recognised the importance of decentralisation, most notably in situations where tasks require creativity and quick decision-making. 

  • Fayol wrote, "A place for everyone and everyone in his place."


Emma





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