Centralisation vs. Decentralisation

Centralisation refers to a central location or group of managerial personnel responsible for planning, decision-making, and action-taking activities. All of the organisation’s significant rights and powers lie in senior management’s hands.

Decentralisation refers to the transfer of control and decision-making from a centralised entity (individual, organisation, or group thereof) to a distributed network. Decentralised networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.