Decentralization/Centralization Controversy

Centralization is also referred to as bureaucracy or hierarchical structures. Centralization in organizational theory is defined as a hierarchical decisionmaking structure with layers of participants. In centralization, high-level administrators retain the authority while delegating implementation to subordinates. The power rests at a single point in the organization. In centralized systems, one individual may be responsible for decision making. Centralization is associated with bureaucratic systems. They are tightly controlled with clear chains of command. Bureaucracies were structurally designed as a form of standardization for coordination.

The history of centralization, bureaucracy, and hierarchy are rooted in the work of Max Weber. Weber developed an organizational structure with characteristics that included division of labor, rules, hierarchy of authority, impersonality, and competence with authority linked to legitimacy. In Weber's model, leadership is derived from authority or the management position. The manager may also be a good leader, but leadership is not inherent in authority.

In 2004, Fred Lunenburg and Allan Ornstein outlined four bureaucratic dysfunctions. A high degree of division of labor may cause the reduction of job challenge and can result in reduced performance, absenteeism, or turnover. A heavy reliance on rules may cause inefficiency when the rules become laden with red tape and rigidity. Communication may become [Page 268]one-way when subordinates withhold information from superiors. In theory, employment and promotion are based on qualifications and performance or merit and competence, but in practice there is a tendency to promote based on loyalty and seniority.

Decentralization refers to the diffusion of decisionmaking power or the sharing of decision-making power among the stakeholders in a flattened or vertical organizational structure. Henry Mintzberg, in 1989, described six forms of decentralization, including vertical and horizontal decentralization, limited horizontal or selective decentralization, and limited vertical or parallel decentralization. In vertical or horizontal decentralization, most of the power rests in the operating core, at the bottom of the structure. In selective vertical and horizontal decentralization, the power over different decisions is dispersed among managers, staff experts, and operators who work in teams at various levels in the hierarchy. Decentralization is affected by contingency or situational factors, including age and size of the organization, technical system of production, environmental factors like stability and complexity, and power system. The power system is affected by tight control from outside influences.

Decentralization is identified with a human resource philosophy, contingency theory, and scholars such as Douglas McGregor, Chris Argyris, Abraham Maslow, Fred Fiedler, Paul Hersey, Kenneth Blanchard, and W. Edwards Deming. Participatory management gives workers more opportunities to influence decisions about their work and working conditions. Autonomy gives workers freedom and independence in their work and working conditions. Participation and autonomy increase worker productivity through the influence workers have in the overall operation of the organization.

Decentralization has been used in education to divide school systems into smaller units while the power and authority remain in the central office and the board of education. Decentralization is identified with district subdistricts, area offices, charter schools, vouchers, and contracted services.

Decentralization proposes to restructure bureaucratically centralized school systems by redistributing decision-making authority and funds to the local campus. Decentralization promotes the decentralization or devolution of management, budgeting, curriculum, and instruction to the school site. Decentralization is accomplished by redistributing traditionally centralized authority to those closest to the decisions, by making schools more efficient when those closest to decisions become more committed to schools by being involved in the decision-making process, and by allowing schools to develop curriculum that is matched with the needs of students, including the use of a cultures of learning model.

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