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i think situational based, and i prefer leaders over managers
Though the organization I work now follows centralized management style (Few people in top management holds decisions making authority), but I like decentralization style because there tends to be faster decision making. And also, lower level managers can have the opportunity to gain valuable experience and develop more fully because there is more room to grow.
Decentralized type is better.
If the management is not powerful to bring positive result for an organization it will not make any difference if we choose it as Centralized or decentralized. The main aim is to manage well and it depends on the circumstances and personal power to go ahead for organization maximum benefits.
Centralized or decentralized is not a matter of personal choice but each of these types of management are suited to the type, size and geographic locations of the business units.
Centralized management is suitable for organisation having business units which are "Cost Centres", are small in size and confined to a particular geographic location which can enable cost saving, effective communication, MIS and control & monitoring from a centralized location. Decentralization in such cases may lead to increased cost, lack of monitoring & control and misuse of resources and power for personal gains.
On the contrary, decentralized management is suitable for organisation having business units which are "Profit Centres", are large in size and spread over a larger geographic location thus making it difficult to have effective communication, MIS and control & monitoring from a centralized location. Decentralization in such cases is essentially required to give power & authority to resources and decision making to the Heads of the Profit Centres without which the unit cannot function as a profit centre.
I prefer decentralized management as that speeds up decision making and creates opportunities for learning and development.
I agree with others that the question may be too broad to answer sensibly, as it depends on lot of factors. Can I attempt a philosophical answer?
I believe that when it comes management styles, while pretty much universally applicable in theory, the upper hand in the actual style of management is usually determined by the corporate & regional culture. That's why expatriates coming to the regional branch of a multinational are often bedazzled at how the management style differs per region, culture and organization-head.
Think of the entity you're managing or leading (company or organization) as a country. Now, which one proves to work better for the specific demographics, abilities, strengths, weaknesses, desires and culture of your stake-holders and the short or long-terms of the entity as whole, with all its pro and cons:
Centralization (close to an autocracy) or decentralization (close to a democracy)?
Partly de-centralized.
The management should give free hand to the team members to work in the most effective and efficient manner for achievement of organizaitonal objectives. But, there are team members though they have the aibility to work independently, need some guidance and support from management. Some of them need necessary training an coaching and mentoring.
In my opinion the best way is to set them free to do their best but provide them guidance, support and coaching when required.
Decentralised Management keep the pace of resolving issues, Ease of Reporting, Accessability in case of Urgent needs, Quick response etc. (If the size of Organisation is quite large)
Centralised/Decetralised: No matter in case of Small sized businesses with limited number of branches/divisions/work centers
It depends on different aspects based on the industry and the business nature. For example, in manufacturing environment, the workers are mostly labors with low level of education and a very specific job. The production line is stable and controlled. The management style should be centralized, since there is high degree of discipline and control is required and very minimum agility is allowed. While in a company full of professionals, such as consultancy firm, the agility is very high, the level or workers is very high, and most of the decision may be taken on the worker's level. Then, the management style should be distributed especially if the firm is globally existing and have multiple offices in diffrent countries/cities.
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