Decentralization involves transferring authority and responsibility to subordinates throughout the organization. It relieves workload from top executives and increases initiative, morale, and quicker decision making. However, it can lack uniformity and control. Centralization reserves most authority at the top, allowing for more coordination and control but overburdening executives and slowing decisions. The degree of centralization versus decentralization depends on factors like organization size, competence of subordinates, and risk of decisions.