Question 4

Can a large sized organisation be totally centralised of decentralised? Give your opinion.


No, a large sized organisation cannot be totally centralised or decentralized because every organisation must have a blend of centralisation and decentralisation. While complete centralisation means concentration of authority in a few hands and complete decentralisation means greater autonomy to the lower levels of management. Therefore, an organisation cannot be completely centralised or decentralised. As an organisation grows, there is a tendency to move towards decentralisation. At the same time, decisions need to be centralised in priority and key result areas.

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