The relationship between centralization and decentralization How to deal with and combine

1. Centralization refers to the degree to which decision-making power and action decisions are completely reserved for the top management, and the decision-making occurs at the top of the organization.

2. Decentralization is a provision and system for the rational distribution of power in a multi-level and multi-agency decision-making system. Decentralization is the symmetry of centralization. Centralization of power means that the power of all affairs is concentrated in the higher-level core organs, and the lower-level organs and ordinary organs can only act in accordance with the decisions, directives, and instructions of the higher-level core organs.

Decentralization means that powers are distributed to different organs in accordance with certain rules, with the higher-level core organs only making decisions on major issues concerning the overall situation, and the lower-level organs and ordinary organs having the right to decide on issues independently within their own jurisdiction, and the higher-level core organs do not interfere.

Let me start with the definition of centralization and decentralization:

Centralization and decentralization are the ways in which the authority of enterprise operation and management is allocated. Centralization is a form of organization in which the authority of enterprise operation and management is concentrated in the upper echelons of the enterprise. His characteristics are: 1. Most of the business decision-making power is concentrated in the hands of senior leaders.

2. There is more control over subordinates. 3. Unified operation. 4. Unified accounting.

The advantages are: 1. It is conducive to centralized leadership and coordination of the activities of various departments. 2. It is conducive to the specialization of management work and improves the efficiency of management activities.

Decentralization is an organizational form in which the management power of an enterprise is appropriately dispersed in the middle and lower levels of the enterprise. The characteristics are: 1. The middle and lower levels have more decision-making power.

2. There is less control from superiors. 3. It can operate independently under unified planning. 4. Implement independent accounting.

Matrix organizational structure.

It is a structure that combines the departments divided by function and the departments divided by products to form a matrix, and it is a structure in which the same employee not only maintains the connection between the group and the business with the original functional department, but also participates in the work of the product or project team.

In the organizational structure, centralization is mainly reflected in the original functional department, that is, the functional department to which the employee belongs. Functional managers have the right to make decisions, give orders, and reward and supervise the execution of orders from their subordinates. In the project team, employees have greater freedom and have the right to deal with problems, and the project manager is not directly responsible for the project team members, so he is only responsible for coordinating the activities of the team members in order to better complete the task.

When functions are concentrated, the additional expenses will also increase, and the corresponding plan can only be taken when the benefits are increased, but the benefits and costs are difficult to calculate directly, and the necessary needs to be carefully measured and evaluated to make the best decision.

1. The concept of centralization and decentralization: centralization means that the governance power of the enterprise is highly concentrated in the hands of the highest governance level, centralized command, unified scheduling, and the lower level personnel have no decision-making power. This management method seems to be unsatisfactory, coercive, and not democratic enough, but it has the advantage of being able to integrate resources in the most effective way and make the best use of resources, but the disadvantages are also obvious.

2. The concept of decentralization: decentralization is a management model that completely imitates the different limbs. This way of completely delegating the management authority can delegate the governance of the enterprise to various departments as much as possible, so as to maximize the advantages of hierarchical governance.

The reason why the organizational design of the enterprise combines centralization and decentralization as a basic principle to guide the hierarchical design is as follows:

The combination of centralization and decentralization is the basic structural form to ensure that the two complement each other's strengths. There are advantages and disadvantages to the centralization and decentralization of enterprises, and only by combining them can we promote our own strengths and our own shortcomings. As far as centralization is concerned, it is conducive to unified leadership and command, and strengthen the control of middle and lower-level organizations, which is of great significance for implementing the business strategy of enterprises, rationally utilizing enterprise management resources, and improving the overall efficiency of enterprises, but centralization will also limit the initiative and creativity of middle and lower-level managers, increase the workload of senior leaders, and also affect the cultivation of overall management personnel.

The advantage of decentralization is that it can overcome the above-mentioned shortcomings of centralization, however, it is easy to produce a tendency to deviate from the overall goal of the enterprise, which makes it difficult to coordinate among the various decentralization units, and the result is detrimental to the improvement of the overall efficiency of the enterprise. Therefore, only by establishing a power structure that combines centralization and decentralization can enterprises make use of their strengths and complement each other's weaknesses and achieve good results that complement each other.