A Comparison of Centralization/Decentralization of Decision-Making Concepts and Measures

Despite the importance of understanding centralization/decentralization (C/D) in organizational theory, accumulated research findings indicate that more attention is warranted in specifying the conceptualization of the construct. Three perspectives have guided research efforts: 1. hierarchical, 2. concentration, and 3. participation. The assumption that C/D is unidimensional is explored in order to refine further the conceptualization and measurement of C/D. Three new measures representing concentration and participation conceptualizations of C/D are compared to the most commonly employed hierarchical C/D indicator. The 3 new measures, as well as the traditional hierarchical approach, are compared across 3 topical decision areas. Two of the 4 measures are found to be subject-matter specific even when the same measurement approach was applied. This implies that different structures of decision making exist simultaneously in the organization along 2 dimensions: 1. the type of decision, and 2. the type of C/D.