Final answer:
Centralized authority concentrates decision-making power at the top, while decentralized authority distributes decision-making power to lower-level employees or teams. The effectiveness of each approach depends on the specific context and needs of an organization.
Step-by-step explanation:
The question asks about the effectiveness of centralized and decentralized authority in an organization. The choice between centralized and decentralized authority depends on various factors such as the organization's goals, size, and culture.
Centralized authority refers to a hierarchical structure where decision-making power and control are concentrated at the top, with little autonomy or decision-making power given to lower-level employees. This style of leadership is often effective in organizations where quick decision-making is crucial, such as in emergency situations or in industries with strict regulations.
Decentralized authority involves distributing decision-making power and authority to lower-level employees or teams. This style of leadership is often effective in organizations that value employee empowerment, innovation, and flexibility. It allows for more diverse perspectives and encourages collaboration and initiative.
In conclusion, the effectiveness of centralized or decentralized authority depends on the specific context and needs of an organization. There is no one-size-fits-all approach, and a combination of both centralized and decentralized authority may be appropriate in different situations.