Centralization
Create: Oct 22, 2019 Edit: Oct 23, 2019
An organization structure where elements of a system are united and consolidated under a single
center.
This type of organization can be applied to computer systems, networks, employees,
accounting operations, and business facilities, as well. Centralization arose in the 1980s, when
computers became able to establish better control in organization departments.
The advantages
of centralization are: increased organization of a system, cost reduction due to standardization
of equipment and procedures, and increased efficiency.
The downside is inflexibility and slow
implementation of structural changes. Hotel reservation systems are sometimes made for smaller
individual hotels, while for hotel chains they have centralized reservation facilities.
When several
reservation systems should be integrated, their infrastructure could be organized according to the
decentralization principles.