Meaning/Definition of centralization and decentralization - SS1 Government Lesson Note

Centralization refers to a structure where power and decision-making authority are concentrated in the hands of a few individuals or a central organization. In a centralized system, the decision-making process is hierarchical, with orders coming from the top-down, and there is little autonomy given to lower levels of the organization.

Decentralization, on the other hand, refers to a structure where power and decision-making authority are distributed among various individuals or groups. In a decentralized system, decision-making is typically more democratic, with more autonomy given to lower levels of the organization to make decisions independently.

Centralization tends to result in a more efficient and consistent decision-making process, but it can also stifle creativity and innovation. Decentralization, on the other hand, can lead to greater flexibility and innovation, but it can also result in inconsistent decision-making and conflicts between different parts of the organization.