Easy2Siksha
In simple terms, the principles of organisation are like traffic rules for managing a group of
people working together. They help maintain order, avoid confusion, and improve
efficiency. Just like how rules on the road help vehicles move smoothly without crashing
into each other, these principles ensure that an organisation functions effectively without
confusion or chaos.
Whether you are running a small student club or managing a multinational company,
understanding these principles is the key to success. So, the next time you see an
organisation running smoothly, remember—it’s not magic, it’s good organisation!
4. What do you understand by Centralisation and Decentralisation? Discuss their features,
types and importance for any organisation
Ans: Understanding Centralisation and Decentralisation
Imagine a school where all decisions – what students will study, what teachers will teach,
when events will be held, and how money will be spent – are taken only by the Principal. No
teacher, student, or department has the authority to make any independent decision. Now,
imagine another school where each teacher decides their own teaching method, heads of
departments choose what to teach, and the event coordinator plans functions without
seeking approval for every small thing.
These two schools represent the two basic forms of decision-making in organisations:
1. Centralisation – All decisions are made at the top level.
2. Decentralisation – Authority is distributed among various levels of the organisation.
Both have their own strengths, challenges, and roles in making an organisation effective.
What is Centralisation?
Centralisation means concentration of decision-making power at the top level of the
organisation. The top management – such as the CEO or Board of Directors – takes all major
decisions. The lower levels simply follow the instructions.
Definition:
Centralisation is the process by which the activities of an organisation, particularly decision-
making, become concentrated within a particular location or group, usually the top-level
management.
Example:
In a centralised hospital, the Chief Medical Officer decides everything – from hiring doctors,
purchasing equipment, to choosing treatment policies. All departments follow their
instructions strictly.