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Centralization, advantages and disadvantages

> Is centralization an administrative model that guarantees order?

Centralization is an administrative model that concentrates authority and decision making.

What is centralization?

Centralization is an administrative model, in which the action of concentrating authority is executed, so that decision making is held in a person or specific group of individuals, in order to improve the work methodology of an organization or management of a company.

The orders in this administrative model are made in a hierarchical way, that is to say that the decision making is carried out by the superior administration. Less participation is granted to people with lower hierarchical positions in the organization.

Characteristics of centralization:

- Decisions are supported by a higher hierarchy within the organization.

- Decisions made at lower levels of management must comply with specific pre-established guidelines in order to be valid. 

- There is no autonomy in the lower positions, nor do they have participation in general decisions. 

- As higher levels exercise greater control over decisions, there is greater centralization. On the other hand, the more participation in decisions the lower levels have, the greater the decentralization.

The advantages of this administrative model are as follows: 

- Its purpose is to obtain order in the processes and management thanks to its hierarchical structure. 

- Decision-makers have great responsibilities and must have an optimal vision of the organization's operation. 

- Roles are well defined, allowing for good internal and external communication. 

- Decision making is more efficient and faster. 

Main disadvantages: 

- Motivation at lower levels of the organization may be affected, since their position does not allow them to exercise leadership. 

- Only orders must be followed and guidelines adhered to.

- Decision-making can only be done by those who have the hierarchical level to do so and, in case they are not available, it is not possible to act quickly.

- People with a high hierarchical level are under great pressure due to the large amount of work and responsibility.

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