Centralisation / Decentralisation


This concept defines and describes different models of decision-making in organisations. It looks at the strengths and weaknesses of centralised and decentralised systems and provides practical examples based on real industry cases.

Technique Overview

Centralisation / Decentralisation

Centralisation / Decentralisation Definition

Centralisation refers to the hierarchical level within an organisation that has authority to make decisions. When decision making is kept at the top level, the organisation is centralised; when it is delegated to lower organisational levels, it is decentralised (Daft, 2010: 17).

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Business Evidence

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Business Application

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Further Reading

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Centralisation / Decentralisation References (4 of up to 20) *

  • Andrews, R., Boyne, G. A., Law, J. and Walker, R. M. (2009) Centralization, Organizational Strategy, and Public Service Performance. Journal of Public Administration Research and Theory, Vol. 19(1), pp. 57โ€“80.
  • Atkinson, W. (2006) Centralised Procurement: Success Breeds Success. [Online] Available at: www.purchasing.com/article/CA6341094.html.
  • Bhargava, S. and Kelkar, A. (2001) Examining the Relationship between Organisational Structure, Job Involvement, Job Satisfaction, and Empowerment: Implications for Human Resource Development,.International Journal of Human Resources Development and Management, Vol. 1(2โ€“ 4), pp. 150โ€“61.
  • Daft, R.L. (2010) Organization Theory and Design. Cengage Learning, Mason, OH.

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