What Is Centralization?

CENTRALIZATION
Centralized management control means that authority for decision-making in your business lies mostly in the hands of a small group of top managers. This is the opposite of decentralized control (local managers are assigned more authority over the management of their areas of responsibility). Centralizing the management control has pros and cons relative to decentralized authority.
Advantages of a Centralized Organization:
• Uniformity
One of the keys to build a strong brand is consistency across all business units. Centralized Management Control typically produces more uniform decisions, which increases the likelihood that the customers would have similar experiences in each market. This does not only improves cross-market revenue,

It is a matter of choice and preference of top level management and not compulsory.
Importance of Decentralisation:
1. Develop initiative among subordinates
Passing of authority at middle and lower level shows the trust and faith of top level in their subordinates and this trust and faith motivate the employees working at different levels as they are allowed to take decisions without seeking the approval of superiors.
2. Develop managerial talent for future
In decentralisation, managers working at lower and middle level also learn the art of making decisions. They get the experience of performing activities of top executives and learn to manage the authority given to them. So decentralisation process prepares the managers working at lower and middle level to perform the task of top level. Therefore, whenever there is vacant job position at top management level, the managers working at lower or middle level can be promoted. This is how it levels for future

This leads to faster decision as the employees who have to perform the activities are allowed to take decision also.
4. Relief to top level management
In the process of decentralisation, top level managers are not overburdened with the responsibilities and authority as they systematically pass the authority and responsibilities at different levels and they become free to concentrate on important and core issues.
5. Facilitates growth
Decentralisation grants more autonomy or freedom to lower level. This helps the subordinates to do the work in the best manner that is suitable for their department. When each department is performing at its best then the productivity increases and it will generate more revenue it which can be used for expansion.
6. Better Control
In decentralisation, employees' working at different levels take decisions on their own as well as they are personally accountable for their decisions, they cannot pass the blame to their superiors. With decentralization better monitoring can be exercised through Score Card, Management Information System, etc.
7. Promotes initiative and