A decentralized organization on the other hand several individuals are involved

A decentralized organization on the other hand

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2015). A decentralized organization, on the other hand, several individuals are involved in the running of the business and decision making. Notably, in a decentralized organizational structure authority is delegated throughout all the levels of management in the organization. This implies that people at different levels in the business have some form of autonomy to make business decisions (Surbhi, 2015). Simply, in centralized organizations, authority and powers with respect to decision-making and planning lie with the top management whereas, in decentralized organizations, accountability, responsibility and authority are disseminated to various management levels. In centralized organizations, the flow of information is vertical whereas, in decentralized organizations, the information flow is open and free. Additionally, the decision- making process is comparatively faster in decentralized organizations compared to centralized organizations where it is slow. The reason for slow decision making in centralized organizations is that the concentration of powers is in the hands of a single individual.
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