{text:bookmark-start} What We Could Learn From Cullman Electric Cooperative?? It is all about the basic management functions in lieu of an organization structure. All management functions are affected with distribution of authority. Basic management functions are: Planning Organizing Leading controlling I will discuss centralization and decentralization for each of the function separately Ican say that high centralization is the result of: high specialization, functional departments, wide span of control, centralized authority. Important advantages of Centralization: {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Environment is stable. Lower level managers are not as capable or experienced at making decisions as upper level managers. Lower level managers don’t want to have a say in decisions. Decisions are significant. Organization is facing a crisis or the risk of company failure. Company is Large. Effective implementation of company strategies depends on managers’ retaining say over what happens. Disadvantages of Centralization: As in centralization all authority is retained by top management, and lower levels have a very little authority, this situation sometimes turns into chaos for the operation of organizations. Following are some disadvantages of centralization: Sometimes some decisions are to be taken immediately at the spot, but due to centralization, none of the decisions can be made without permission of top level managers and it results in financial loss of organization. Participation from lower levels can be used as motivating tools, in centralization there is a little participation from lower levels, those who are at lower levels, when feel that they are not directly responsible for the operation they might not take...