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Centralisation refers to a hierarchical structure where decision-making authority is concentrated at the top, while decentralisation disperses decision-making authority throughout the organization.
Advantages of centralisation: speedy decision making, uniformity of action, and efficient use of resources.
Disadvantages of centralisation: lack of flexibility, overburdening of top management, and demotivation of employees.
Advantages of decentralisation: greater flexibility, motivation of employees, and better use of resources.
Disadvantages of decentralisation: delay in decision-making, lack of uniformity of action, and risk of conflicts.
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