NAME: Razze Ann Joy B.

Logronio PROFESSOR: Cardito Callangan

YEAR & SECTION: BPA-42 DATE: March 14, 2011

“SPECIAL ISSUES AND PROBLEM IN PUBLIC ADMINISTRATION”

*CENTRALIZATION VS DECENTRALIZATION:
One of the most important questions that a company must answer as it grows is whether or not to
continue management that is centralized in one person, or to decentralize management by delegating
some of its authority to subordinates. Delegation is the process of entrusting and transferring responsibility
and authority to the lowest level.

In a CENTRALIZED MANAGEMENT
ORGANIZATION, major decisions are made by a few top
executives, subordinates exercise a little (if any) initiate
decision making. Even when there are multiple branches,
most decisions are made at the main office rather than at
the local branch.
Chain department and grocery stores frequently
adopt a centralized management scheme. Centralized
management in these organization assume that the
responsibility for buying, advertising, marketing,
accounting, and other functions will be conducted at one
location even though there are many operating branches.

A DECENTRALIZED MANAGEMENT
ORGANIZATION represents a systematic effort to delegate
to lower levels all authority, except that which can only be
exercise at the highest level.
*Implications of Decentralization:

1. There are fewer burdens on the Chief Executive as in the case of centralization.
2. The subordinates get a chance to decide and act independently which develops skills and
capabilities. This way the organization is able to process reserve of talents in it.
3. Diversification and horizontal can be easily implanted.
4. Concern diversification of activities can place effectively since there is more scope for creating new
departments. Therefore, diversification growth is of a degree.
5. Operations can be coordinated at divisional level which is not possible in the centralization set up.
6. There is greater motivation and morale of the employees since they get more independence to act
and decide.
7. Co-ordination to some extent is difficult to maintain as there are lot many department divisions and
authority is delegated to maximum possible extent, i.e., to the bottom most level delegation
reaches. Centralization and decentralization are the categories by which the pattern of authority
relationships became clear. The degree of centralization and de-centralization can be affected by
many factors like nature of operation, volume of profits, number of departments, size of a concern,
etc. The larger the size of a concern, a decentralization set up is suitable in it.

SUMMARIZATION:

CENTRALIZED DECENTRALIZED

1. Control by FEW because men at the top believe 1. Control by MANY because men at the top believe
they are indispensable. Don’t trust subordinates and that participation will increase efficiency and
like to build empire within. effectiveness.

2. Decisions are made by the top management 2. Decision re made throughout the
ONLY. ORGANIZATION.

3. The drawback is potential paralysis of decision 3. The drawback may be controlled by MANY.
making and poor moral.

MY OWN OPINION:
Among the two I’d rather choose the DECENTRALIZATION because it’s more applicable to use
plus the mere fact that we have a democratic nation which means that humankind has a freedom of speech
to express their ideas and feelings. I believed that the progress of one organization is not just about their
leader for a reason that he/ she is not the only person on it of course there are individuals that helps
him/her to achieve its goal, remember NO MAN IS AN ISLAND. If you could notice cooperation would make
work easier to be done; respecting the ideas, decisions and creativity of others creates a good employee-
employer relationship showing equality and fairness to everyone; suggestions of others might be used as a
guide to make a decision, YOU COULD NOT EVEN KNOW IF IT HELPS IF YOU DON’T DARE TO TRY.