Here is a compilation of term papers on ‘Centralisation of Authority’ for class 11 and 12. Find paragraphs, long and short term papers on ‘Centralisation of Authority‘ especially written for school and college students.

Centralisation of Authority

Term Paper Contents:

  1. Term Paper on the Meaning of Centralisation
  2. Term Paper on the Implications of Centralisation
  3. Term Paper on the Factors to Determine Degree of Centralisation
  4. Term Paper on the Merits of Centralisation
  5. Term Paper on the Demerits of Centralisation

Term Paper # 1. Meaning of Centralisation:

This means the extent to which authority is concentrated at the top of the organisation. Centralisation means concentration of authority of decision making in the hands of at the top level. Subordinates are not allowed to participate in decision making process. They are only to follow the instructions of the top management in carrying out the decisions. In a centralised organisation, subordinates contribute the maximum.


Henri Fayol has summed up the idea of decentralisation and centralisation as, “Everything that goes to increase the importance of the subordinates role in decentralisation, everything which goes to reduce it is centralisation”.

Louis. A. Allen, “Centralisation is the systematic and consistent reservation of authority at central points within the organisation.”

So centralisation refers to withholding of delegated authority. Major part of significant decisions is taken by those who are at the higher levels of the organisation and not by those who are entrusted with the task of executing them. In centralisation subordinates, power is reduced to zero so far as authority is concerned. Subordinates are delegated authority relating to routine matters and not much decisions making exercise.

Term Paper # 2. Implications of Centralisation:

The implications of centralisation are:


(a) Reservation of operating authority of planning, organisation, co­ordination and control at the top level.

(b) Reservation of operating authority by middle level managers.

(c) Operations at the lower levels are subservient to command, consent and control by higher authorities in the line.

(d) Sometimes work may be delegated to subordinates but authority may be retained to the largest possible extent.

Term Paper # 3. Factors to Determine Degree of Centralisation:


Factors to be considered to determine the relative degree of centralisation are:

(a) The organisation is relatively small and carries on simple operations, centralisation should be advocated.

(b) The quality of competent managers is said to lacking at all levels of an organisation then it should follow a highly centralised structure.

(c) The existence of an adequate and effective communication system will favour centralisation of authority.


(d) Generally the finance function should be centrally controlled in order to ensure effective control over the assets and capital expenditure.

(e) The greater the degree of standardisation needed in the organisation, the greater is the need for centralisation. This facilitates the easy introduction of uniformity of operations and uniformity of actions at the operative levels.

(f) Situational factors also influence the degree of centralisation required in organisations. The examples of situational factors are: Highly uncertain business conditions, Development of emergencies which threaten the existence of the organisation. In rational decisions of both long term and short term nature and to deal with futuristic problems.

(g) The rate of change in the organisation affects the degree of centralisation. A well established, old, slow-moving organisation will always prefer to have centralised authority.


(h) History of the organisation: This refers to the growth of the organisation over a period of time. Organisations which have grown from within or expanded under the guidance of owner manager always shows a marked tendency to keep authority centralised.

(i) The outlook of management is conservative and prefers to retain most of the powers with itself, it is likely to centralise authority and control.

(j) Centralisation can be followed in organisation where control techniques or devices are said to be defective and inadequate. In the development of plans the lower authorities are not allowed to participate then centralisation is preferred.

Term Paper # 4. Merits of Centralisation:

The merits of centralisation are:


(a) It facilitates standardisation of procedures and systems essential to smooth administration and better servicing of customers. It ensures development of consistent policies.

(b) Standardised uniform policies will help in evaluation of the results of different departmental activities and enable comparative cost studies and cost control.

(c) Centralised policies bring in the economies large-scale operations.

(d) It facilitates personal leadership. A gifted dynamic leader by the virtue of authority conferred on him can take quick decisions, enterprising actions and guide the organisation successfully in achieving business objectives. This facilitates the progress of small companies.


(e) Centralisation ensures cohesiveness and harmony throughout the organisation. This is needed for co-ordinating diversified activities to achieve common objectives.

(f) Emergency decisions can be taken without delay and hesitation in a centralised set-up. change in policies can be implemented quickly.

Term Paper # 5. Demerits of Centralisation:

The demerits of centralisation are:

a) It destroys the individual initiative and enterprising spirit.

b) It may be lead to over burdening of managers and even efficient managers may prove to be unsuccessful.

c) Administration may become unwieldy and unsystematic in its practical working. It may tend to slow up the operations because of multiplicity of critical decisions concentrated at the top.


d) Mental and material motivation of the subordinates cannot be in organisations as they do not possess the authority to make decisions and have no opportunity to get rewarded for their talents in administration.