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Centralization & De-centralization Presented by: Group 4 Information Science & Library Management

Group Members Name Serial No. Name Roll 1 2 3 4 5 6 Md. Selim Reza Bappy Nihar Sultana Nusrat Jannat Bipasha Mufrad Hossain Anjuman Ara Jesmin Ashikul Islam 26 27 28 31 32 33

Content Centralization And Decentralization Introduction Definition Favor of Centralization Disfavor of Centralization Decentralization Favor of Decentralization Disfavor of Decentralization Centralization And Decentralization

Introduction An Organizational structure is the outline of a company’s framework and guidelines for managing business operations. Small business owners are usually responsible for creating their companies’ organizational structure. Two types of organizational structure are found in the business structure: Centralized and Decentralized.

Definition Centralization Decentralization Top Managers Hold Most Decision Making Authority The word “centralization” came into use in 1794 as the post french revolution. Decentralization Lower Level Managers Hold Significant Decision Making Authority The word “decentralization” came into usage in the 18 20s. Definition Copyright © ISLM,University of Dhaka. All rights reserved.

The structure of Centralization and decentralization Top-to-bottom approach Bottom-to-top approach Level 1 Level 2 Level 3 Level 4 Decentralized approach Centralized approach

What is centralization? Executive Director Finance Manager Oper-ations Manager Finance Executive Admin. Officer Senior Manager Asst. Manager Centralization means reservation of authority at central point within the organization. In centralization, control and decision-making reside at the top levels of management

Centralization A management structure where decision making is done by those with a broader perspective that includes having amassed considerable knowledge and in information about what needs to be done. In a centralized organization decisions made by higher management are typically communicated to lower organizational tiers who are the expected accept and move forward in a way consistent with those decision. “Everything that goes to increase the importance of the subordinate’s role is decentralization; everything that goes to reduce it is centralization.” —Henry Fayol

Advantages of centralization 1. Reduced cost : the standardized procedure and method helps in considerably reduction of management cost. 2. uniformity in action: uniformity in action is established throughout the organization because of central administrative control 3. personal leadership: centralization encourages and permit personal leadership. The introduction of personal leadership facilitates quick action aggressive marketing and attainment of pin –pointed objectives or purpose. 4.Facility: centralization permits flexibility and adaptability of the organization to the changed circumstances. 6.Availability of information: For centralizing of an information institution one can get all necessary information from a specific please. 5. Improved quality of work: Improved quality of management is possible because of standardized procedure and better supervision. 7. Make a good relationship: By centralizing of an information institution users can meet to each other. Thus they can make a good relation.

Disadvantages of Centralization 1. Delay in information management: Centralization creates loss of man-hours and delay in information management. Quick decision is not possible which also results delay in information management process. 2.Remot control: Staff of the information institute are always kept under the control of the authority. 3.No loyalty: In centralization management process there is no subordinate’s initiative in work.

Disadvantages of Centralization cont.... 4.No special attention: In centralization no special attention is given to special work as all works are done at one place. 5.Frustration:Centralization leads to frustration because of too rigid central control. 6. Expectation: Many poor users can not be able to read their expected books. 7.Interest: Many users lose their interest in reading books because of they have to come the specific place first then they can collect their information.

What is decentralization? Firms that grant substantial decision making authority to the managers of subunits are referred to as decentralized organizations Most firms are neither totally centralized nor totally decentralized

Decentralization can be viewed as an extension of delegation Decentralization can be viewed as an extension of delegation. When a part of the work is entrusted to others, it is known as delegation. Decentralization extends to the lowest level of the organization. “Decentralization Is The Systematic And Consistent Delegation Of Authority To The Levels Where The Work Is To Be Performed.” —Louis Allen

Advantages of Decentralization 1. Reduces the burden on the top executives: Decentralization relieves the top executives of the burden of performing various information management functions. 2.Facilitates diversification: Under decentralization, the diversification of information management activities is facilitated. 3.Pressure of work: Decentralization of information institution helps to reduce the working pressure because it has many centers. 4.Proper management: Decentralizing of information institution helps to make the proper management of information. 5.Root level: Rural users also able to read their expected books.

Advantages of Decentralization 6. Executive development: When an information institution is decentralized, executives in the institution will get the opportunity to develop their talents by taking initiative. 7.It promotes motivation: Decentralization stimulates the formation of small cohesive groups. 8. Better control and supervision: Decentralization ensures better control and supervision as the subordinates at the lowest point. 9. Quick decision- making: Decentralization brings decision making process closer to the scene of action.

Disadvantages of Decentralization Uniform policies not followed: Under decentralization , it is not possible to follow uniform policies and standardized procedures. Problem of co-ordination: Decentralization of information institution creates problems of co-ordination of information management. More financial burden: It involves more financial burden and a small information institution can not afford to do this. Required Qualified personnel: Decentralization of information management becomes useless when there is no qualified and competent personnel. Copyright © ISLM,University of Dhaka. All rights reserved.

Disadvantages of Decentralization Difficulties: It can be faced difficulties , because it is trying to get everyone on the same page when making decision. More staff: It needs more staff for maintaining the overall system. Expensive: Lack of Specialization: Copyright © ISLM,University of Dhaka. All rights reserved.

Business owners should carefully consider which type of organizational structure to use in their company Small organizations typically benefit from centralized organizational structures because owners often remain at the forefront of business operations CONSIDERATIONS Larger organizations usually require a more decentralized structure since such companies can have several divisions or departments Business owners may need to consider changing the organizational structure depending on the growth and expansion of business operations Copyright © ISLM,University of Dhaka. All rights reserved.

Conclusion A balance must be maintained in management of information Institution. So that an effective structure evolves that permits the accomplishment of goals and objectives. In complex situations ,not all principles will have the same priority, nor will they pull in the same direction. Often varying situation will require one principle to be emphasized more than another until the environment changes.

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