Centralization and decentralization (Elements in organizational design),”Traditional view: centralization is the degree to which decision making takes place at upper levels of the organization. Decentralization is the degree to which lower-level managers provide input or actually make decisions. It is not an either-or concept, but a matter of degree. Given the traditional hierarchical structure
centralization was most common. Today’s view: managers choose the amount of centralization/decentralization on the basis that will allow them to best implement their decisions and achieve organizational goals.”