What is centralization and di centralization …

In simple words , centralisation is anything which increases the importance of subordinate's role. Decentralisation is anything which decreases the importance of subordinates role

Apart from delegation, another important factor leading to effective organisation is the degree of centralisation or decentralisation of authority. The two terms ‘centralisation’ and ‘decentralisation’ refer to a philosophy of organisation and management that focuses on either the selective concentration (centralisation) or the dispersal (decentralisation) of authority within the structure of an organisation. In fact, the question of where authority resides with such a structure is of crucial importance for organisational effectiveness. ADVERTISEMENTS: This question is sought to be resolved through an operational philosophy of management — either to concentrate authority for decision-making in the hands of only one individual or a handful of people or force it down the organisation structure into the hands of quite a large number of people. Like the concept of delegation the concept of centralisation has to with the degree to which authority is concentrated or dispersed. Just as authority can be delegated from one individual to another, organisations also develop patterns of authority across a wide variety of positions and departments. ‘Delegation’ is a narrow concept. In general, it refers to the extent to which individuals delegate authority and responsibility to people reporting directly to them. On the other hand, ‘decentralisa­tion’ is a much broader concept. It usually refers to the extent to which top-level management delegates authority downward to divisions, branches, or lower-level organisational units. In others words, it refers to the extent to which power and authority are systematically delegated throughout the organisation to middle and lower-level managers. General Electric, for example, has historically allowed middle and lower level managers to make decisions regulating the area of responsibility

Decentralization refers to take a power from superior and give them to every level of managemnt

Centralization refers to made a power in top level of management