Centralization vs Decentralization: A Comparative Study

1.
Centralization is a process in which the authority of the power of decision-making is with some
persons. The top management approves all the crucial decisions and actions, which are subjected
to it at the lower level. The centralized system of technology is capable of enhancing the
adaptive capability for altering the patterns for utilizing the land on a wide scale. The examples
are insurance practices, management of coastal zones, and the development of flood plans. It can
also be explained by illustrating the example because of low rains in 2007, Melbourne declared
an emergency of water and the state government declared its plan known as ‘Our Water Our
Future ‘. It facilitated for a new desalination plant in the state of Melbourne, expansion of water
grid in Victoria, the transformation of the irrigation system in the food bowl in the Northern area
of Victoria, evaluation of the sustainable water strategies and recycling and conservation of
water (Kiem, 2013). It illustrated the example of centralization plan pertaining to water supply in
the state of Victoria. Therefore, the centralization system creates long-term benefit and
immediate advantage to the host society. Although Barnet & amp; O’Neil (2010) stated that the
maladaptation of the system like the disproportioned burdening of the most susceptible increase
in the emission gases of the greenhouse, increase in the economic, social and environmental cost
and the increase in the unnecessary dependency prove to the disadvantages of the centralized
system.
Decentralization, on the other hand is the organized delegation of the responsibility at all the
stages of the management and company. In the context of the decentralized organization, the
power is by the retrieved by the upper management so that it can take all the major decisions and
frame policies pertaining to the entire organization. All the other powers may be a substitute for

the lower and middle management. It can be stated with the help of the following example. In the
year 2007, the government of Queensland had introduced the targets for saving of water, which
was mandatory for all the residential buildings to be formulated as a part of the Queensland
Development Code (Sharma, 2012). More than 200 000 domestic tanks were mounted by
utilizing the Water-wise rebates of the State government between August 2006 and August
2008(Gardiner, 2010). Rainwater tanks have been a significant alternative for local supply of
water in South East Queensland (SEQ). It has helped in reducing the demand for the SEQ Water
Grid and delayed the necessity for the infrastructure of additional bulk water supply (Sharma,
2012). Therefore, the advantages of this mechanism are that the tank owners have the chance to
adjust and alter the reservoir itself along with the conditions of its installing for matching their
own objectives as well. It can diminish the burden of the senior and reduce the interdependence
on the supply of water along with posing less damage to the environment. The tank users have
the decision making power for the optimum utilization of the limited supply of the tanks and
evaluation of the maintenance routine of the infrastructures. If they want the tank systems to
function in an optimum manner, they have to modify the water utilization behaviors so it is
expected to use most of the water before rainfall. Therefore, the major disadvantage of the
system is the financial burden to the individuals (Gardiner , 2010).