What is Centralized?

Centralized system is the opposite of a decentralized system where decisions are distributed in ways without the coordination of a central authority. Centralized and decentralized systems are the two types of organizational structure. Each type has its own advantages and disadvantages.

Advantages of centralization

• Centralized organizations benefit from a clear chain of command and focus on a vision which tends to be quick and efficient execution of decisions.
• Centralized organizations are also more cost-effective owing to the clear separation of responsibilities between different actors.

Disadvantages of centralization

• Centralized organizational systems lack control over the implementation process.
• Employees rely on the information communicated from the top level and there will be delays in work.