Centralization and Decentralization

Centralization and Decentralization of office services:

Depending upon the size and management of the organization office services can be centralized as well as decentralized. Office helps in coordinating and facilitating the work of other departments of business. The purpose of office is to furnish competent clerical service to all in the business, whatsoever is required.

Centralization of office services means that office functions are physically concentrated in one department. It is the duty of the centralized office to provide for such office service as required by any department.

The advantages of centralization of office services are:

1. It helps in coordinating.
2. It saves office cost.
3. Equitable distribution of work load is possible.
4. Supervision of work can be improved.
5. Method of work can be standardized.

The disadvantages of centralization are:

1. It does not foster loyalty for departments
2. Delay in work.

Decentralization means that a sectional office is attached to each department for services that cannot be centralized. Other services which are common to all departments are centralized in one general office. This is a combination of centralization and decentralization and is known as functional centralization.

The advantages of decentralization are:

1. It helps in specialization in departmental services.
2. It lessens burden on general office.
3. It fosters departmental loyalty.
4. It enables to maintain secrecy.
5. Work can be performed more quickly.

The disadvantages of decentralization are:

1. There may be duplication of work.
2. It created problems of coordination
3. Cost of office management is high
4. Office workload cannot be evenly distributed among workers of various departments.