What is the difference between centralism and decentralism?

Centralism and decentralism differ primarily in decision-making authority within an organization. Centralism concentrates decision-making at the top levels of management, allowing for uniformity and control, which can ensure consistency but may hinder responsiveness to local needs. Decentralism distributes decision-making authority across various levels and regions, empowering managers and employees to make choices that can lead to faster adaptation and innovation.