Key Differences Between Centralization and Decentralization

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What do you think are the key differences between centralization and decentralization? Why are these concepts important in decision rights assignment?
According to Yannick Vanhaelen, centralization means the power to make decisions and plan things is in the hands of the management, and decentralization is all about the transfer of the power from the top management to the low-level management. Both of these processes have their own advantages and disadvantages and are entirely different from one another (Vanhaelen, 2018, p. 241). For example, in the centralization system, a person or two are responsible for handling the entire firm. They can take all the decisions for their organization according to their own desires or mindsets, and it is not necessary that these decisions will benefit the company in the long run (Samuelson & Marks, 2015).
In contrast, in decentralization, a group of individuals, belonging to the top and low levels, can make decisions for the benefit of the company. In this process, the chances of making a mistake are significantly lower because more than two qualified and experienced persons are given the power to take favorable decisions. Their aim is to grow the company in one way or the other. The process of centralization is good for startups. Here, the power needs to be in the hands of a few people so that the organization can efficiently pave its way toward success (Saito, 2003, p. 127).
However, for large-sized companies and brands, the process of decentralization will prove to be better than that of centralization since these organizations have a significant number of qualified individuals who are ready to devote themselves fully. When it comes to talking about efficiency and perfection at the governmental level, it is believed that the centralized system is better than the decentralized system because the power is not handed over to various peo...