Management and leadership may work in tandem within the effectiveness of an organization. Management is a set of rules, regulations and process which may include measuring performance, staffing, planning, problem-solving and budgeting that help with the functioning of an organization. According to Stojkovic S., Kalinich D., & Klofas J. (2015), “Instead, management is directed at attaining organizational goals” (p. 9). Management seeks objectives, manages work, makes rules, avoids conflicts and have subordinates instead of followers. On the other hand, leadership for the most part, is about inspiring, leading the individuals. Moreover, an individual who is in a leadership position has followers, …show more content…
Explain the difference between centralized and decentralized organization. Discuss the advantages and disadvantages of each type of agency.
The difference between centralized and decentralized organization: in a centralized organization, the decisions, operations and directions for the company come directly from one individual. The advantages and disadvantages of centralized organization are: It can be very efficient for an organization that is centralized in terms of missions, visions and business decisions. With respect to planning and decisions-making, the retention of powers and authority reside with the top management. However, Centralized organizations may suffer from slow decision-making, negative effects of multiple layers of bureaucracy because these organizations tend to have a multitude number of layers that range from the owners to the team operations. There is an inadequate control over the centralized organization. Stojkovic S., Kalinich D., & Klofas J. (2015), explained “In centralized organizations, authority and decision making are generally performed by top-level executives whereas in decentralized systems, authority and decision making are generally found at lower levels of an agency’s hierarchy” (p. 48). In a decentralized organization, the decisions, operations and directions for the company come from many individuals with a variety of expertise at different levels in the business and thus ensure knowledgeable managers to handle various types of business situations. The hierarchical structure of the decentralized organization is based on the delegation of authorities to managers. In addition, the dissemination of authority, responsibility and accountability to various management levels rests at the departmental, divisional, unit and center level managers. Decentralized organizations may struggle with multiple individuals having different opinions on a particular business decision. Decentralizational organizations suffer from the lack leadership