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Answer -
Any organisation regardless of the size will be finding it difficult to function properly either as centralised or decentralised as because there needs to be a balance between the two systems in order to make the best possible utilisation.
In centralisation the decision-making capacity or authority is restricted to the people sitting at the top level of management. All the decisions regarding the organisation are being taken by the top-level management. In a stark contrast to this system, the decentralisation works by delegating the decision-making capacity to the managers at lower level. There is distribution of decision-making capabilities which is spread evenly.
For an organisation to perform at the best it has to follow a mix of centralisation and decentralisation. A growing organisation cannot rely on centralisation to manage all the functions. It would slow down the decision-making process for the organisation. Hence a decentralised system helps ease the load on decision making. Also, an organisation cannot let all the decisions to be made by the lower level management as it will be a risk to the integrity of the organisation.
Therefore, there should be a balance between centralisation and decentralisation in an organisation.