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What are the factors influencing centralization and decentralization_
What are the factors influencing centralization and
decentralization?
Centralization
Centralization refers to that organizational structure where decision-making power is
confined to the top management, and the subordinates need to follow the instructions of
their seniors. Blockchainx, Centralization of authority is essential for the small-scale
organizations which lack resources and finance.
Factors influencing Centralization and Decentralization
centralization
It consists of delegating all administrative, budgetary and social functions to the State or
to institutions located in the country's capital. In other words, political, legal and economic
power is centralized and little power is vested in local entities or authorities. According to
the neoclassical theory of Economy, this organizational model of a State is called
centralism .
Types of centralization
Administrative centralization:
administrative matters are part of the responsibilities of the state.
Organizational centralization:
It is the political functions are exercised by the institutions managed by the State.
Decentralization
In order to establish a comparison between what is decentralization and centralization, it is
necessary to first know their concepts.
In this sense, Token Swap Platform Development decentralization is a term that refers to
the political organization of a government, that is, it consists of decisions regarding the
administration and budgets that, in general, are matters of the capital of the country, are
transferred to local entities. So they are given a certain autonomy in matters related to
management and also some legal regulations.
Types of decentralization
Territorial decentralization:
it is the concession of administrative and budgetary functions to the communities without this
meaning the separation of the local authorities from said management.
Decentralization of services:
is the granting of authority over industrial companies, public services, commercial
establishments, among others.
Administrative decentralization:
is the granting of administrative and financial powers to local authorities.
Difference Between Decentralization and Centralization
Now that we know what decentralization and centralization are, it is time to know how each of
these fundamental axes that define the organizational structure of a government differ.
Let's see below:
In decentralization, power is concentrated in local authorities and collectivities. In centralization,
it is in the hands of a single authority. In decentralization, decisions on economic and social matters
are concentrated in several hands, that is, they are taken jointly. In centralization, political,
administrative, economic and social decisions are the sole responsibility of the president.
On the other hand, in decentralization, in order to execute actions for the benefit of the nation, the
authorization of the central axis of the government is not necessary. In centralization, all those actions
that are going to be executed at the local level must be consulted and authorized by the central
government.
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