Centralization
Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, “Centralization” is the systematic and consistent reservation of authority at central points in the organization. The implication of centralization can be :-
1. Reservation of decision making power at top level.
2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.
Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. For example, in a business concern, the father & son being the owners decide about the important matters and all the rest of functions like product, finance, marketing, personnel, are carried out by the department heads and they have to act as per instruction and orders of the two people. Therefore in this case, decision making power remain in the hands of father & son.
Centralization came with the invasion of the country by the Spaniards, the Americans, and the Japanese. A strong central government was needed to control numerous attempts to regain freedom. When independence was finally restored in 1946, reconstruction was directed by a strong government. But the innate desire for autonomy asserted itself through the years.
A Local Autonomy Act was passed in 1959 (Republic Act 2264) to grant fiscal and regulatory powers to local governments. In 1967, a Decentralization Act (RA 5185) was enacted to increase the financial resources and powers of local governments. The 1973 Constitution of the Republic mandated that the state "shall guarantee and promote the autonomy of local governments to ensure their fullest development as self-reliant communities". These
1. Reservation of decision making power at top level.
2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.
Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. For example, in a business concern, the father & son being the owners decide about the important matters and all the rest of functions like product, finance, marketing, personnel, are carried out by the department heads and they have to act as per instruction and orders of the two people. Therefore in this case, decision making power remain in the hands of father & son.
Centralization came with the invasion of the country by the Spaniards, the Americans, and the Japanese. A strong central government was needed to control numerous attempts to regain freedom. When independence was finally restored in 1946, reconstruction was directed by a strong government. But the innate desire for autonomy asserted itself through the years.
A Local Autonomy Act was passed in 1959 (Republic Act 2264) to grant fiscal and regulatory powers to local governments. In 1967, a Decentralization Act (RA 5185) was enacted to increase the financial resources and powers of local governments. The 1973 Constitution of the Republic mandated that the state "shall guarantee and promote the autonomy of local governments to ensure their fullest development as self-reliant communities". These