Centralization — Meaning, Advantages and Disadvantages Centralization — Meaning, Advantages and Disadvantages Centralization of Authority In any business organization, concentration of authority and powers in the hands of top management is referred to as centralization, everything which goes to reduce the importance of subordinates role in an organization is known as centralization. In such a type of office organization, the authority and powers of each and every activity lies in the hands of top few, say office manager and his immediate subordinate, and other subordinates play the second and subsequent fiddles. In fact, they are not to play any role. Instead they asked to work and only work according to the dictates of what the boss wants and orders.
You lose control over the standardization of your training material as well as consistent training programs. Without a centralized approach to your training, employees and supervisors frequently find ways to skip the training completely and attempt to learn new skills and programs by themselves.
Decentralization allows the individual instructor to take his own approach to training and some trainers will not make the extra effort to keep their training excellent. Inconsistency Decentralized training allows individual regions or divisions to handle training as they see fit. Some regional area managers endorse training and will spend the money and time to make certain all of their employees and mangers are adequately trained.
Other regional managers do not believe in training and will not provide proper training for all of their employees. Some of your people will therefore be well-trained and others will receive little or no training.
Your company will have a difficult time providing consistent service and quality products using this approach to training.
More Costly A decentralized approach to training is almost always more costly for your organization.
Cost savings are usually given to companies that need a large number of training products. Decentralization results in each area using its own training materials, usually at a higher cost per student. More trainers need to be trained to conduct your programs, instead of just one or two who are able to deliver your training to your entire company.
Registration, evaluation and retraining costs are also higher when you use a decentralized approach to your training. Instructor Quality Another shortcoming of a decentralized approach is the quality of the instructor. When each division of your company has its own trainers, their training is not as consistent or thorough as that of a centralized training function.
Trainers are frequently selected for their knowledge of the material that needs to be trained and not their training skills. Without a program to develop instructors, trainers are left on their own and frequently present material in a way that does not help trainees to learn best.
Legal Aspects A decentralized training function could open your company up to legal issues.
Required programs like safety and sexual harassment may not be trained according to legal requirements. Mandated courses and programs require attendance and completion of the course by every employee.
Without centralized control of your training, many employees find excuses to not attend the training, which can be a legal liability for your company. Certain mandated courses require a very thorough approach to the training, and this is not always possible without a centralized lesson plan and consistent training program.
Legal exposure increases with a decentralized training approach.Centralized management control means that authority for decision-making in your business lies mostly in the hands of a small group of top managers. This is the opposite of decentralized control, where local managers are granted more authority over the management of their areas of responsibility.
Disadvantages of a Centralized Training Function by Alan Kirk - Updated September 26, When organizations develop training programs, they need to consider the needs of . Disadvantages of Centralization. The disadvantages of the centralization of office services are: 1. The personnel in the central office unit may lack personal interest in the work of other departments.
2. The work of a department may be of a confidential nature and there is . A Centralized Training Organization is one that organizes the training function into a single or central group within the enterprise.
‘Centralized’ refers to organization design models where all resources and processes are managed within a single organization, reporting to . In a centralized organization, the decision-making powers are retained in the head office, and all other offices receive commands from the head Centralization refers to the process in which activities involving planning and decision-making within an organization are concentrated to a specific leader or location.
The Disadvantages to Centralized Control in a Business. Advantage and Disadvantage of Centralizing Management Control.
by Neil Kokemuller.
Related Articles. This means that local managers function more in task delegation as opposed to creating new ideas and leading in their own ways. This lack of authority over their local activities often.