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Decentralization and Centralization

Decentralization or decentralisation is the process of redistributing or


dispersing functions, powers, people or things away from a central location or
authority.

Centralisation (British), or centralization (American), is the process by which


the activities of an organization, particularly those regarding planning and
decision-making, become concentrated within a particular location and/or
group or keeping all of the important decision making powers within head
office.

o. What is different between Decentralization with Centralization?


1. The difference between centralisation and decentralisation is that decentralisation
is votes and ideas of multiple people that are the citizens of a society or community.
But centralisation is only when the head or leaders make decisions and have
responsibilities of the people.
2. Decentralization: Can lose power over country.
Centralization: Can have more power over country.
3. Centralization of authority means the power of planning and decision making are
exclusively in the hands of top management while in case of Decentralization, the
powers for the same has been disseminated by the top management to middle or low
level management. There is a never ending debate between these two terms to
prove which one is better.
o. Indonesia is follow decentralization or centralization ?, give example to strengthen
your answer.
Indonesia follows decentralization because Indonesia has a president, government,
and so on. This means this is not centralization, but it is decentralization.
o. What is advantage and disadvantage become decentralization in Indonesia?
There are rules in Indonesia and sometimes the people in Indonesia always protest
and it will lead to democracy.

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