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How does delegation impact decentralization or centralization of a firm?

How does delegation impact decentralization or centralization of a firm?

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In decentralization, the delegation of authority is undertaken in a systematic manner in an iteration, from higher level to that of the bottom-most level of authority. In centralization, there is no delegation of powers to the lower levels of the management. The decision-taking power and accountability are both centralized thus.

In this way, it could be said that it is the degree of delegation that determines whether the firm is centralized in its power or decentralized.

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