MANAGEMENT

Detailed explanation-1: -A decentralized organization is one in which most decisions are made by mid-level or lower-level managers, rather than being made centrally by the head of the company. It’s the opposite of a centralized organization, in which all decisions are made at the top.

Detailed explanation-2: -Centralized management is the organizational structure where a small handful of individuals make most of the decisions in a company.

Detailed explanation-3: -In centralized organizations, strategic planning, goal setting, budgeting, and talent deployment are typically conducted by a single, senior leader or leadership team. In contrast, in decentralized organizations, formal decision-making power is distributed across multiple individuals or teams.

Detailed explanation-4: -Students might have often come across the terms Centralization and Decentralization when studying management and accounting in Commerce. These are terms that are used to denote the structure of an organisation. These two structures function exactly opposite to each other.

Detailed explanation-5: -A company with a decentralized organizational structure is one where mid-level and lower-level managers make most of the decisions, rather than the senior management team. Sometimes, management even involves team members in the decision-making process.