Centralized and decentralized administration

Table of Contents
PUBLIC ADMINISTRATION – AN INTRODUCTION:....................................................................3
MEANING:.......................................................................................................................................3
DEFINITIONS:.................................................................................................................................3
Prof. Woodrow Wilson,.................................................................................................................3
Prof. L.D. White,...........................................................................................................................3
Prof. Piffner,..................................................................................................................................3
CENTRALIZATION VERSUS DECENTRALIZATION:...................................................................4
MEANING AND DEFINITIONS:....................................................................................................4
DIFFERENCE BETWEEN CENTRALIZATION AND DECENTRALIZATION:.........................5
Centralized Decision Making:.......................................................................................................5
Decentralized Decision Making:....................................................................................................5
Factors For Accessing Centralization Or Decentralization:...........................................................6
DECENTRALIZATION VS DELEGATION...................................................................................6
MERITS OF CENTRALIZATION:..................................................................................................7
Utilization of talents:.........................................................................................................................7
Flexibility and rapidity:.....................................................................................................................7
Elimination of overlapping :..............................................................................................................7
Consistency and uniformity :.............................................................................................................7
Simplified process for people:...........................................................................................................8
DEMERITS OF CENTRALIZATION:.................................................................................................8
No participation of subordinates:.......................................................................................................8
Increased burden on top executives:..................................................................................................8
Neglect of democracy :......................................................................................................................8
Lowers interest and enthusiasm of subordinates:...............................................................................8
MERITS OF DECENTRALIZATION:.................................................................................................9
Reducing burdens:.............................................................................................................................9
Immediate remedy:............................................................................................................................9
Reduction of red Tapism:..................................................................................................................9
Resourcefulness: .............................................................................................................................10
DEMERITS OF DECENTRALIZATION:......................................................................................10
Risk of Anarchy and coordination Problems:..................................................................................10
Challenges in implementing uniform policies:................................................................................10

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 Centralized and decentralized administration

APPROACHES TO DECENTRALIZATION:...................................................................................10
Doctrinal approach..........................................................................................................................11
Political approach:...........................................................................................................................11
Administrative approach:.................................................................................................................11
The dual role approach:...................................................................................................................12
In summary,.................................................................................................................................12
Types of decentralization:....................................................................................................................12
Political jurisdiction:........................................................................................................................12
Administrative decentralization:......................................................................................................13
Vertical decentralization:.............................................................................................................13
Territorial decentralization:.........................................................................................................13
Functional decentralization:.........................................................................................................13
FACTORS GOVERNING CENTRALIZATION OF..........................................................................14
Authority And Responsibility..........................................................................................................14
Administrative Factors:...................................................................................................................14
Functional Factors:..........................................................................................................................14
External Factors:..............................................................................................................................15
CENTRALIZATION VS DECENTRALIZATION:...........................................................................15
CONCLUSION:..................................................................................................................................16
Bibliography........................................................................................................................................16

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 Centralized and decentralized administration

CENTRALIZED AND
DECENTRALIZED ADMINISTRATION
PUBLIC ADMINISTRATION – AN INTRODUCTION:

Public administration is a critical component of any Government. It is responsible for

implementing policies and programs that affects the lives of citizens. Public administrators
are entrusted with a significant amount of power and responsibility, and as such, are expected
to behave ethically and responsibly. Accountability and Transparency is the key principle that
can promote ethical behaviour in public administration.1

MEANING:
The word Administration is derived from a Latin word Ad-ministrare which means to
serve or to look after the people. Public administration has two main jobs. The first job is to
give services people need. The second job is to make rule for things that affect people’s lives.
It works in all levels of government – local, state and national.

DEFINITIONS:
Prof. Woodrow Wilson,
A detailed and systematic execution of public law, every particular application of
General law is an act of administration.

Prof. L.D. White,

The public administration consists of all those operations having for their purpose the
fulfilment or enforcement of public policy.

Prof. Piffner,
It would seem that administration consists of getting the work of government done by
co-ordinating the efforts of people so that they can work together to accomplish their set task.

CENTRALIZATION VERSUS DECENTRALIZATION:

Centralization focuses on giving government administrators more control, ensuring
uniform policies and maintaining consistency across the country. This approach is seen as
important for building a strong defence, promoting national unity and managing the country
efficiently.
1
1. Avasthi & Maheswari (2012): Indian Public Administration, Laxmi narain agarwal. pg. 120.

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 Centralized and decentralized administration

On the other hand, decentralization focuses on transferring power to local governments

so they can address specific regional needs and concerns. It helps bring democracy closer to
the people and encourages local involvement in decision-making. Decentralization also
supports regional autonomy, where local authorities have more control over policies affecting
their area.

NITI Aayog represents the government’s efforts towards centralization, aiming for a unified
national approach to development and governance. Meanwhile, the Panchayat Raj system
symbolizes decentralization, giving local communities more authority and fostering
grassroots democracy. The ongoing challenge for the government is finding the right balance
between these two strategies to meet both national and local needs effectively. 2

MEANING AND DEFINITIONS:

Centralization stands for concentration of authority at or near the top; Decentralization,
on the other hand, denotes dispersal of authority among the number of individuals or units.

In the words of White, “the progress of transfer of administrative authority from a lower
to a higher level of government is called centralization and the a lower to a higher level of
government is called ‘centralization’ the converse, ‘decentralization’. 3

According to Henry Fayol, “Everything that goes to increase the importance of the
(subordinate’s) role id decentralization, everything which goes to reduce it is centralization”.

In the words of Charles worth, “The significant question in any large administrative
undertaking is whether or not any definitive actions are taken by the centre-head which can
be taken at the periphery.”

DIFFERENCE BETWEEN CENTRALIZATION AND DECENTRALIZATION:

The difference between the two concepts – Centralization and Decentralization-is well
brought out by Fesler—

Centralized Decision Making:

2
2. Laxmikanth M., Public Administration, cited. pg. 123.
3
3. White. L.D., cit., pg. 27

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 Centralized and decentralized administration

In a centralized structure, most important decisions are made at the headquarters. Field
officers (those who working in various regions) have limited authority and must often refer
issues back to the central office.

Decentralized Decision Making:

In a decentralized structure, field officials are given more authority to make decision on
their own rather than consulting the central office frequently. They have the power to handle
important matters directly in the field without consulting above authority.

Factors For Accessing Centralization Or Decentralization:

“Whether a field or an organization leans towards centralization or decentralization can

be observed from the following factors:

1.How many important decisions are made by field officials vs. Those made only by
headquarters.
2.Whether the central officers consults with field officers before making decisions.
3.How often field officials need to send matters to headquarters for approval.
4.The presence of detailed, central rules that dictate how field officials should make
decisions.
5.Whether citizens can appeal field decisions directly to headquarters
6.Whether a single field official manages all field activities in a geographic area.
7.The competence and expertise of field officials.

Simply having a large field presence or employing many workers in the field doesn’t
mean an organization is decentralized. It depends more on the authority and decision making
power given to those in the field.4

MERITS AND DEMERITS OF CENTRALIZATION:

4
Laxmikanth M., Public Administration, cited. pg. 123

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 Centralized and decentralized administration

Merits
Demerits
Utilization of Talents
No participation of subordinates
Flexibility and Rapidity
Increased burden on top executives:
Elimination of Overlapping
Neglect of democracy
Consistency and Uniformity
Lowers interest and enthusiasm
Simplified process for people

MERITS OF CENTRALIZATION:
The centralization has following merits:

Utilization of talents:
It help is fuller utilization of talents of outstanding executives for the organization as a
whole. Centralization allows the best executives to use their skills and talents for the benefit
of entire organization, ensuring that top talent is fully utilized.

Flexibility and rapidity:

Centralization permits flexibility and rapidity of adjustment to changing business or
administrative conditions. It enables organization to quickly adopt to changing business or
administrative conditions, since decisions are made centrally, making the process faster and
more flexible.

Elimination of overlapping :
It means reducing or removing duplicate efforts or tasks that are being done by different
departments or teams in an organization. In a centralized system, decisions and activities are
controlled form one central point, which helps ensure that different parts of organization
aren’t doing the same work unnecessarily. This prevents wasted time, effort, and resources,
leading to cost savings.

Consistency and uniformity :

Centralization ensures consistency of operating and uniformity of decisions and
consequently, helps retain substantial control over activities of the organization. Centralized
control ensure that decisions are consistent across the organization. This leads to uniform,
operations, reducing confusion and ensuring that everyone follows the same guidelines.

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 Centralized and decentralized administration

Simplified process for people:

It is easier to the people, as all important decisions are taken by only one authority at
the central point within an organization, they have to concentrate only at one level of
administration to fulfil their needs.

DEMERITS OF CENTRALIZATION:
Centralization is not free from some dangers. It has following demerits:5

No participation of subordinates:
It doesn’t offer any scope for the subordinates’ participation in the management of an
organization. In a centralized system, lower level employees have little or no involvement in
decision-making, leading to a lack of engagement and motivation among them.

Increased burden on top executives:

Centralization increases burden on the top executives, because all the decisions are
taken by the executive at the central level. Since all major decisions are made at the central
level, it puts a heavy burden on top executives, making it harder for them to manage
everything efficiently.

Neglect of democracy :
In centralization people’s participation in the administration, a basic principle of a
democratic concept, is totally neglected. This can lead to dissatisfaction and feelings of
exclusion.

Lowers interest and enthusiasm of subordinates:

Centralization can reduce motivation and enthusiasm of lower level subordinates and
local state units. When all major decisions are made at the top; those working in regional
offices or lower position may feel their input doesn’t matter. As a result, these officials might
lose interest in their work, feel less responsible for outcomes, and have lower job satisfaction
because they don’t have the authority to take meaningful decisions or influence changes in
their areas.

MERTIS AND DEMERITS OF DECENTRALIZATION:

5
Contemporary word politics, NCERT (2006). Pg.61

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 Centralized and decentralized administration

Merits
Reducing Burdens
Demerits
Immediate
Risk of Anarchy
Remedy
Reduction of
Challenges in Red
implementing
Tapism policies
Resourcefulness

MERITS OF DECENTRALIZATION:
Reducing burdens:
It removes the danger of “apoplexy at the top and anaemia at the extremities”. The
dispersal of authority, functions and responsibility, on the one hand, brings relief to the
overburdened central authority, and strengthens field agencies and grass root units, on the
other.6

Immediate remedy:
The people immediately affected get an opportunity for adaptation and adjustment in
the administrative programmes and operations which are brought closer to them.

Reduction of red Tapism:

The dispersal of authority encourages faster action, reduces delays and shortens the red
tape. Overall efficiency of administration, thus, increases.

Resourcefulness:
It gives an opportunity to develop resourcefulness and self-respect among subordinate
administrators, who thus have to fend for themselves, to take their own decisions, and
shoulder their own responsibilities.

DEMERITS OF DECENTRALIZATION:
Decentralization, on the other hand, is also not free from dangers. Its demerits are give
ahead:
67
Contemporary word politics, NCERT (2006). Pg.62

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 Centralized and decentralized administration

Risk of Anarchy and coordination Problems:

When power and decision-making are spread too widely, it can lead to chaos or
disorders. When many people or groups are making decisions independently, it can be hard to
ensure that all actions are in harmony and working towards the same goals.

Challenges in implementing uniform policies:

When responsibilities are decentralized, it can be tough to enforce consistent policies
across an entire country. For instance, achieving national goals such as improving standard of
living, ensuring free and compulsory education can be more difficult. Centralized
administration helps ensuring that they are applied consistently everywhere.

APPROACHES TO DECENTRALIZATION:
In political science and public administration decentralization has been discussed
basically from the view point of arrangement of government.

James W. Falser has grouped the different approaches to decentralization into four
categories. They are,

Doctrinal Approach

Political Approach

Administrative Approach

Dual Role Approach

Doctrinal approach:
1. This approach views decentralization as a goal in itself, not just as a way to improve
organizational efficiency.
2. It emphasizes empowering local communities, such as cities, towns, or villages.
3. The core idea is to give people power by allowing them to make decisions and giving
them authority to act.
4. Instead of seeing decentralization as a tool to achieve something else, this approach
views it as a worthy goal in itself.

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 Centralized and decentralized administration

Political approach:
1. This approach sees decentralization happening in a political environment.
2. A strong political commitment is necessary to establish and maintain local
governments.
3. Without this commitment, decentralization will exist only in laws but not in actual
practice.
4. In India, power has been legally given to local bodies, but without proper funds,
resources, and autonomy, they can't function effectively, and are controlled by state
governments

Administrative approach:
1. This approach focuses on making administration more efficient and effective.
2. Decentralizing administrative units allows for better local decision-making and helps
address grievances faster.
3. Decentralization can create a challenge where administrative units must balance
between local administration and central authority.

The dual role approach:

1. This approach talks about the struggle between sticking to old ways of administration
(tradition) and adapting to new changes (modern needs).
2. The main issue is that old methods focus on maintaining law and order, while newer
methods push for economic and social development
3. The four approaches of W. Falser addresses different issues and challenges in the
realization of decentralization.

In summary,
a. The doctrinal approach treats decentralization as an end in itself.
b. The political approach highlights political character of decentralization.
c. The administrative approach is based on efficiency, effectiveness and rationality.
d. Finally, the reorientation of roles from status quo to change orientation is the crux of
dual role approach.

Types of decentralization:
1. Political Decentralization:

1. This involves transferring decision-making power from higher levels of government

to local ones.
2. It allows local people to participate in decisions that affect them. More participation
leads to better policies and more stable governments.
3. The 73rd and 74th Constitutional Amendments in India helped set up rural and urban
local governance systems, which is an example of political decentralization.

2. Administrative Decentralization:
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 Centralized and decentralized administration

1. This type involves higher authorities giving some of their powers and responsibilities
to lower administrative units within the government.
2. It can be based on territories (e.g., districts or zones) where local units are empowered
to handle their duties within set limits.

3. Fiscal Decentralization:

1. This refers to giving local governments the ability to generate and manage their own
revenue through taxes.
2. Without financial power, local governments can't function properly. In India, except
for Kerala, other states haven't provided enough financial autonomy to local bodies,
which limits their effectiveness.

4. Functional Decentralization:

1. This involves passing specific functions (like education or health) from central or
state governments to local bodies.
2. For example, the 73rd amendment assigns 29 responsibilities to local governments in
India, but the state government has the final say on how these functions are handled.
3. There can be confusion if these functions aren’t clearly defined, leading to chaos
instead of empowering local communities.

FACTORS GOVERNING CENTRALIZATION OF

DECENTRALIZATION:
Centralization or decentralization, however, are not a priori principles which can be
universally applied at any time and at any place, they have a situational relevance. 7

James W. Felser, mentioned four kinds of factors which come into play in deciding
for a centralized or a decentralized system.

There are of four kinds, namely—

1. Authority and Responsibility:

People in charge (authority) don’t like to share power because they are responsible for
everything that happens. They fear losing control if they give too much responsibility to
lower levels.

2. Administrative Factors:

If the administration (government workers) is experienced and good at their job,

decentralization can work. If they are not skilled or if decisions need to be made quickly,
centralization is preferred.

7
(Avasthi, 2012)

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 Centralized and decentralized administration

3. Functional Factors:

Some tasks need to be the same everywhere, like national defense or big infrastructure
projects, so they stay centralized. But smaller, local tasks can be decentralized to lower
levels.

4. External Factors:

If people or political groups want more say in decisions, decentralization might happen.
Local participation in government often pushes for decentralization.

CONCLUSION:

To conclude that centralization concentrates decision-making authority at the top

levels of management. It ensure uniformity in decisions, strong leadership, and tighter
control over operations. However, it may lead to slower decision-making and reduced
flexibility, with less innovation and employee empowerment. While decentralization
distributes decision-making power across various levels within the organization, promoting
quicker responses, innovation and employees engagement. While it can improve flexibility
and adaptability, it may also lead to inconsistent decisions and a lack of uniform control
across the organization. Both approaches have their pros and cons, and an optimal balance
between centralization and decentralization often depends on the organization’s size, goals
and environment.

Bibliography
Avasthi, M. (2012). Indian Public Administration (12th Edition ed.). (pg - 120 - 138): Laxmi
Narain Agarwal.

Laxmikanth, M. (2022). Public Administration (ISBN 13:978 ed.). Hyderabad, (pg : 50 - 62):
McGraw Hill Education (India) Private Limited.

vasudevan, H. (2006). Contemporary World Politics. In (pg: 60 - 76).

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