5. Should we centralize or decentralize?

Centralization is the extent to which decisions are taken at higher levels of the organization.

Decentralization, on the other hand, is the extent to which lower levels of the organization contribute to, or are responsible for, decision-making.

The aim of this choice is to understand at what level decisions are made.

Between these two extreme possibilities, it makes more sense to measure the degree of importance of each concept.

Indeed, organizations are often a mix of centralization and decentralization.

Although in the past, decisions tended to be centralized through a purely pyramidal organization, with all power and authority at the top (functional structures), the current trend is increasingly towards decentralization (matrix or project structures).