The principle of decentralization is interpreted as follows. New opportunities for decentralization: five examples. Pros and cons of centralized management structures

The number of Ukrainians who today need social assistance is constantly growing. In response to such a challenge, it is the decentralization of social policy that can radically change the quality and quantity of social services.

Power to communities or new rules

Today in Ukraine there are 13 million pensioners, 2.6 million people with disabilities, 2 million Chernobyl survivors, 1.6 million World War II veterans and other segments of the population who depend on social protection and government support.

In accordance with the amendments to the Constitution, the draft of which was prepared by the Cabinet of Ministers of Ukraine, the regions will receive significantly expanded powers in almost all areas - from the housing and communal services system to the healthcare sector.

Now very clear and understandable templates are being formed according to which the distribution of power will be carried out. Each level of management will receive its own powers. Local power will be concentrated at three levels. The smallest is a community (community), the largest is a region. A community can unite a dozen settlements. If there is a regional center, that is, a city of regional significance, and around it there are a dozen small villages, then the community will unite this city and villages. At the community level there will be an elected council (rada), its executive committee and a chairman, who is elected by local residents. In total, there are about 1.5 thousand communities in Ukraine.

The current districts will become large: from 490 districts there will be about 120. Each district will have its own council, which will form an executive committee.

At the regional level, regional councils with executive committees will operate.

The latter will deal with issues within their competence - roads, schools, hospitals, and so on.

They will find “government” at the Regional State Administration

The current regional state administrations will change both their functions and name. But if we want to preserve the state, we need to leave the central authority in the localities. In any state, the executive branch must be represented locally. In France these are prefects, in Poland they are voivodes, in Italy they are commissars. Now there is a discussion about what name to give to the Ukrainian governing bodies.
Local authorities will perform the following main functions:

Supervision of compliance with legislation by local governments; - coordination of territorial executive authorities. (For example, if education is transferred to local government, then the inspection for quality control of education is controlled by the state);

Coordination and implementation of government programs that are implemented using budget money.

In conditions of emergency or martial law - management of all bodies in the territory of the district or region.

In order for local governments to have the opportunity to develop the region, they want to leave much more tax funds locally than they currently do. It is tentatively proposed to leave in place up to 25% of the income tax for individuals, and from 10 to 25% of the corporate income tax. It is also good that the unified and land taxes are proposed to be left in place in full.

It is also expected that 100% financial support will be provided for the powers delegated by the state to local governments.

At the same time, local governments will have the opportunity to introduce local taxes, determine their rates and establish benefits. Tax collection will be divided into two parts. There is a general state tax service. And local governments will have their own small structure, which will collect local taxes and fees established by local councils. These are small taxes, which will form part of the local budget.

"Ambulance" - for the community, cancer center - for the region

The powers of local governments and central authorities will be divided in all key areas.

It is proposed to transfer issues of development, maintenance of local infrastructure, landscaping, emergency and primary medical care, the operation of kindergartens and schools, housing and communal services, and passenger transportation to the community level.

The district authorities will manage the transport infrastructure at the district level, issues of secondary medical care, and maintain improvement facilities.

At the regional level, issues of regional roads, transport infrastructure, and specialized medical care will be resolved. For example, in the field of education, funding for preschool and secondary education will remain at the community level. Specialized school education (sports schools, boarding schools) - at the district level. Professional technical education, higher education of the first and second levels of accreditation - in the region. And higher education of the third and fourth levels of accreditation (institutes and universities) will be handled by the state.

In the field of medicine, functions will also be distributed. Prevention, emergency care and primary healthcare remain at the community level. Inpatient medicine is a district. Specialized medicine (oncology centers, cardiac centers) is a field. And the institutions that deal with very complex pathologies are the level of central government.

In terms of infrastructure, responsibility will be distributed as follows: communal infrastructure - city roads, water and gas networks - at the community level. Local roads between communities and bridges on these roads are a district. Internal regional infrastructure, with the exception of strategic infrastructure, for example, bridges across the Dnieper, is a region. And trans-Ukrainian highways, for example, the Kyiv-Chop road, are the state.

Law enforcement agencies will remain under the authority of the central government. But within the communities, a security police will be created, which will be fully staffed, financed and managed by the local government of the community. At the district and regional levels there will be no such district police officers or regional police officers.

Departments of the Ministry of Internal Affairs will also work together with the municipal police.

The central government deals with criminal cases. This is a 100% government function.

The security police draw up administrative protocols, deal with minor offenses - someone smokes in the wrong place, someone parks in the wrong place, violates the regime of silence and cleanliness. The police should be doing this, but in fact they are not doing this. There should be no investigative bodies of the municipal police.

Power in the country is in the hands of the people

If decentralization of power is carried out, the upcoming local elections will become a litmus test for the majority of Ukrainians, because over a long period of time people will indeed have a unique chance to get their own representatives in local authorities. Let's put it this way: local elections will allow the “third force” to manifest itself in defending the interests and rights of those who find it most difficult today. First of all, pensioners, war and labor veterans, and disabled people need help today. If these people receive their representatives in local government, then it can be argued that a high-quality update of services for these categories of the population is guaranteed. We, the Party of Pensioners of Ukraine, understand that it is our representatives in local authorities who will become reliable assistants for vulnerable categories of citizens, and therefore we will do everything to ensure that the barrier between officials and ordinary Ukrainians is forever overcome.

Summing up, it becomes obvious that the democratization of power is not a tribute to fashion, not a political situation, but a necessity to increase its effectiveness, one of the ways of which is decentralization. Democratization of power should be carried out, firstly, in the direction of redistribution of powers and resources between the center and local governments in the interests of territorial communities. Now the central government is overloaded with power, while there is very little real power in the localities. Secondly, territorial communities must have the opportunity to prove their ability to take on additional powers and, of course, additional burdens and responsibilities. This is real potential for the initiative of territorial communities and their leaders, one of the main ways to develop our country and improve the well-being of every person. With such an organization of power, when local self-government is not an appendage of the state, but its main and equal partner, the person, his rights and freedoms, health, honor and dignity are truly the highest value and the essence of the activities of all power structures.

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Good day, dear friends. Today there are practically no people who do not know about cryptocurrencies. But it’s not even the digital assets themselves that are of particular importance, but the technology they popularize – blockchain.

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Blockchain itself is the embodiment of decentralization and the possible financial revolution that is already approaching. Without a doubt, this technology has very serious potential, and in the future it will certainly show its best side.

Yes, so far everything is happening at the test level, but let’s make allowances for the fact that blockchain is a very young technology. The principle of decentralization, which is embedded in it, can change not only the financial sphere, but also our entire life in general.

In 2017, there was a lot of talk about blockchain and the principle of decentralization, but in 2018 there were significantly fewer of them. The cost of many cryptocurrencies continued to actively decline, and the voices of many supporters of digital assets gradually began to subside. Given such a large-scale information lull, one might think that the technology itself had lost its former glory.

The picture was aggravated by the fact that the governments of many countries spoke extremely negatively against cryptocurrencies, and various forums were full of themes that cryptocurrencies are a universal evil and a fraud on a large scale. The opinion began to spread that against the backdrop of all this chaos reigning in this area, blockchain technology began to lose relevance. If you share this opinion, then you are probably extremely far from the truth.

Now we will try to figure it out with you and find evidence that the principle of decentralization is alive and continues to improve. We will not go into philosophical speculation and reasoning, but will simply resort to consideration of dry facts. And, as you know, you can’t argue with facts.

MACHINES WILL BECOME INTELLIGENT

From the very beginnings of the global industrial revolution, people created machines, subsequently completely controlling their work. Over time, machines have become full partners for humans, helping them solve a bunch of important issues. There are many things now in which machines are superior to us. Elementary, in order to calculate something, we resort to the help of a calculator. If something needs to be translated, we turn to online translators. And a great many such examples can be given. The fact remains that machines have become integral companions in human activity, making it easier for him to solve certain problems.

However, artificial intelligence technologies that excite our consciousness so much today can only be considered the tip of the iceberg. Now there are many organizations that themselves are developing platforms that operate on the basis of artificial intelligence. But the real breakthrough will come when organizations start to come together and create AI-powered platforms that are more technologically advanced when they come together in groups. This will become a global and perfect mechanism that will change our lives forever.

Let's look at absolutely real examples. Now many large banks already have platforms built on the basis of AI, and they help identify the likelihood of fraud in certain payments. Each bank develops its own model based on its own statistical data. Such banks can repel fraudsters more quickly and efficiently, and this is their main competitive advantage.

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But despite this, fraudulent activities with various payments remain a problem in the modern financial model. But, let's be honest, any bank first of all strives to lobby for its own goals. The benefit for the bank is much more important than the benefit it can bring to society.

It is now very unlikely that banks around the world will create their own conglomerate, within which a single perfect AI model will be developed that prevents fraud. Banks, one way or another, compete with each other, and it is unlikely that they will form an alliance in the foreseeable future. If this does not happen, then the problems of fraud will remain open.

It is very interesting that within the framework of such a trend, the principle of decentralization will allow all financial structures not only to maintain their economic value, but also to bring significant benefits to society. How can this work? In theory, banks could create a single AI model that would be stored on the blockchain.

Any participant can freely obtain the latest copy of the model from the blockchain, train it according to his own principles, and place it back into the blockchain, confirming the fact that the training has taken place.

If the network recognizes that training has had a positive impact on the performance of the model, then this will automatically spread to other participants, which will maintain the high efficiency of the system and its constant modernization.

As an incentive, a participant who successfully trains the system can receive additional rewards in the form of tokens that will be generally accepted within the network. Thus, the model will be constantly improved, and each individual participant will be able to maintain the economic value of their own data, thereby acting in favor of both themselves and society as a whole.

MACHINES WILL START COMMUNICATING

A striking example here is self-driving cars, which is already becoming a kind of trend. If machines are self-driving, then they need a way in which they can communicate.

Direct and seamless communication simply cannot be achieved through centralized systems. The fact is that if at least one element of the centralized network fails, the entire system may collapse. If we talk specifically about cars, then such problems can provoke numerous accidents. If machines can communicate with each other, then depending on centralized networks can have certain dangers.

With the advent of self-driving cars, new economic models will appear that are of particular interest.

For example, on what principle will a car decide whether to give way to another vehicle?

I think it would be logical if cars could negotiate with each other based on the preferences of the passenger they are transporting. For example, if a passenger is in a hurry, he can pay a certain amount to other road users to let him pass.

Accordingly, those traffic participants who are not in a particular hurry let others pass and receive their reward. Perhaps, over time, within the framework of this issue, two options will become relevant, according to which the passenger will initially decide how to travel:

• Get to the desired point faster by paying a reward to other road users.
• Get to the point more slowly, allowing those in a hurry to pass, but getting rewarded at the same time.

Such communication must take place directly between vehicles. At the same time, it must function without interruption 24/7, which can only be ensured by a decentralized network.

HOW NOT TO MISS AN OPPORTUNITY

First of all, now we need to strive for new knowledge while others remain in the dark. The principle of decentralization is perfectly applicable not only on the stock exchange, but also in many sectors of our activity. It is not known what the fate of cryptocurrencies will be in the future, but the principles that blockchain imposes are truly valuable and can change our lives beyond recognition in the future.

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Centralized principle of building a management system.

Management system structure
There are two fundamental approaches to organizing the management of complex networks:

centralized management;
decentralized management.
Centralized management is carried out from a single network management center, into which all management information from all managed objects flows. The advantages of centralized management are:

concentration of all information about the state of the network in one control node;
a holistic picture of network construction;
relative ease of managing network administrator rights;
minimum control cycle length;
consistency of decisions made.
At the same time, with a significant network scale, centralized management loses a number of advantages. The disadvantages of this approach include:

control system vulnerability;
a significant amount of processed information requires high-performance servers;
a significant part of the network channel capacity is used to transmit service information to the control center.
Decentralized network management is characterized by the absence of a single network control center. Its functions are redistributed among multiple network management systems. The advantages of this approach are:

control system survivability;
there is no need for high-performance servers;
smaller volumes of processed information and service information traffic compared to the centralized approach.
The disadvantages of this approach include:

the difficulty of delimiting “areas of responsibility”;
complexity of managing the rights of network administrators;
lack of a holistic picture of network construction;
inconsistency of decisions made.

Decentralized principle of building a management system.

These systems are most widely used in telephone exchanges, since they satisfy the basic principles of adapting systems and ensuring their reliability. The system is divided into modules (often the requirements for the system state that “the system is built on a modular principle”). Each module (Fig. 2.15) is designed to serve a group of external sources or to perform a limited task (sometimes restrictions apply to both quantity and functions). The station is assembled from such modules in accordance with the currently required capacity and assigned tasks. The smaller the capacitance of the lines or devices contained in the module, the more accurate the adaptation.

The module has local microprocessor control and includes switching devices that interact with the outside world (most often at the physical and data link levels). The small patch field allows terminals to be most efficiently connected to the central patch field. There are several known ways to build systems with a decentralized control method.

Direct connection of blocks For this method of connecting blocks, this method of connecting blocks (Fig. 2.16) is characterized by connecting blocks directly to each other without using a central switching

SWITCH STATIONS 105

no field. Each module then has a bunch of lines or digital paths connecting it to every other module. Inside the module there are concentration and mixing stages in the required volume. The latter is designed to access the required bundle of lines. When establishing a connection within a module, the direction (module number) in which the connection is established must be determined. In addition, we are talking about divided beams, i.e. the entire load is divided in different directions. In this case, the use of interstation lines is reduced: the greater the station capacity (number of modules), the smaller the line bundles, which is inconvenient when expanding.

A solution without the use of a switching field was allowed in the first versions of the Linea UT system from Italtel. The module value was accepted as 2000 numbers, the maximum number of modules was 16.

Station using a central switching field

For intermodule switching using all module outputs, a switching field is established. The latter requires the installation of a special device for switching control, as shown in Fig. 2.17, A.

Self-routing switch field

The presence of a switching field processor disrupts decentralization, since an element appears, the failure of which causes the entire station to fail. Therefore, the switching field is at least duplicated, and in some systems 4 blocks are installed. During normal operation, all these units operate in load sharing mode, which improves the quality of service.

One of the achievements in the construction of telephone exchanges was the development of a self-routing system. Such a system does not require a processor that controls the search for paths in the switching field, decentralizes control, increases reliability and allows for a gradual increase in the switching field. A variant of such a field is shown in Fig. 2.17, b, the principle of its operation will be discussed further. The division of stations into modules requires the exchange of signals within the station, in connection with this, the following options for organizing such signaling arise at the block diagram level.

Decentralization- the process of redistributing or dispersing functions, powers, people or things from central control.

Decentralization of power includes both political and administrative sides. Decentralization can be territorial - moving power from the central city to other territories, and can be functional - by transferring decision-making authority over the main body of any branch of government to lower-level officials. This process was called "new public management", which was described as decentralization, subject management, competition between government and local coordination.

Rising government spending, weak economic performance and the rise of free market ideas have convinced governments to decentralize their activities to contract with private market firms and completely privatize the performance of some services.

Decentralized control

According to the European Charter of Local Self-Government of October 15, 1985, the content of local self-government lies in the right guaranteed by the state and the real ability of the territorial communities of citizens (territorial collectives) themselves and the bodies formed by them to independently and under their own responsibility resolve a separate part of public affairs, acting within the limits constitution and laws of the relevant state. Local governments are recognized as one of the main foundations of any democratic regime.

A very high degree of decentralization is observed in Sweden, and the government does not interfere in the affairs of local authorities. The same very high degree of decentralization is characteristic of Denmark.

Political decentralization

The purpose of political decentralization is to give citizens or their elected representatives more influence in the development and implementation of laws and policies. Depending on the country, this may require constitutional or legislative reforms, the development of new political parties, the creation of local political units, and the encouragement of advocacy groups. One of the arguments in favor of implementing decentralization reforms is to increase the efficiency of both central and local authorities, as well as to create favorable conditions for economic development.

Political decentralization means regional representation in the national parliament, elections of regional governments, distribution of political power, constitutional rights at the regional level and the relationship between the regional and national levels. Regional representation in the national parliament reflects the presence of one or two chambers of the legislature, and the adequacy of the region's representation in the national legislature. The indicator of political connectivity reflects the role of the regional level in the activities of the national level.

Political decentralization includes indicators that measure political participation at the regional level and between different levels and shows how independently the regional level makes decisions at the national level, which has the right to intervene.

Degrees of functionality

Quite often, in many countries the degree of political decentralization is higher than functional. A high degree of functional and political decentralization is characteristic of Germany, Switzerland, Belgium and Spain; the Czech Republic, Portugal, and Poland are quite high. Austria and Slovakia have more political than functional powers. In Slovakia, functional decentralization is at a very low level, and political decentralization is at a fairly high level, which is evidence that the regional level has virtually no decision-making powers. Greater political degree of functional decentralization in Bulgaria and Lithuania, stipulating that the regions have almost similar powers at the regional level, but little influence on the national level.

There is a high interdependence between functional and political decentralization. If regions have certain financial resources, but are limited in making and implementing their decisions (Functional decentralization), then such financial autonomy loses its meaning. Otherwise, the powers to solve their own problems are not supported by appropriate financial resources and also lose their significance.

The more political functions a regional level of government has, the more autonomous it is in the exercise of political power. Moreover, financial and functional, as well as administrative decentralization, have a positive relationship: the more financial resources a region has, the more functions it can perform and can afford to maintain a larger administrative apparatus.

Administrative decentralization

Today, there are four main forms of administrative decentralization:

1. Deconcentration is a weak form of decentralization, which transfers powers to manage, use and implement social policy from central bodies to bodies in existing areas or, if necessary, to new ones, but with the condition that direct control over the implementation of these powers is carried out from the center.
2. Delegation does not provide for the responsibility of semi-autonomous local governments for management, use of funds and implementation of social policies. These governments are not completely controlled by the central government, but are ultimately accountable to it. This type includes the creation of public-private enterprises or corporations - special projects to provide various services in the regions. Under this system, the local government receives broad powers.
3. Devolution is the transfer of all powers in the management, use and implementation of social policies at the subnational level to regional, local or state governments.
4. Alienation (or privatization) means the transfer of all enterprises, institutions and organizations into private ownership, and there is a complete removal from the state of responsibility for management, use of finances and implementation of social policy. The means of production may also be sold, and the dismissal or transfer of workers from private companies or non-profit organizations is allowed. Many of these functions were first performed by individuals, companies or organizations, and then transferred to the government either directly or through regulation of the activities of business entities.

In a small organization, all decisions can be made by its leader. However, with an increase in the size of the organization, the scale and complexity of the work, a situation may arise where the manager will be overloaded with decision-making, even if this is all he will do. This situation raises the question: should rights be concentrated at the top or distributed across levels of the organization? In practice, this is the dilemma between centralization and decentralization, which is a big problem in organization design.

There are highly centralized and decentralized management.

Centralization- this is the concentration of decision-making rights, the concentration of power at the top level of the organization’s management.

If, when distributing powers, priority is given to the lower levels of the management system, i.e. they are given more rights to make independent decisions, this type of management is called decentralized. Decentralization - this is the transfer or delegation of responsibility for a number of key decisions, and, consequently, the transfer of rights corresponding to this responsibility to the lower levels of management of the organization.

The concepts of “centralization” and “decentralization” are not mutually exclusive. The problem of choosing between centralization and decentralization is the problem of choosing the optimal design of the organization. “Centralization” and “decentralization” are only different ways to solve the problem of distortion of information when moving it from level to level along the “vertical” of management.

Centralization is the response of an organized system to prevent information from being distorted as it passes through an ever-increasing number of levels of management. The greater the number of levels in an organization, the greater the distortion of information passing through these levels.

Both management under certain conditions can be acceptable and effective. In vain, highly centralized management is sometimes considered as a negative option for building a management system - it all depends on specific circumstances.

That's why it's important to be clear about everything disadvantages and advantages both centralized and decentralized control (scheme). It should be borne in mind that these advantages and disadvantages can and should be differentiated according to the criterion of the scale of management, because the need and possibility of one or another type of management is largely determined by the scale at which management is carried out.

HIGH DEGREE OF CENTRALIZATION	SMALL ORGANIZATION	LARGE ORGANIZATION
Advantages
1. Clarity of coordination and organization 2. Direct control 3. Coordination and responsibility	1 Concentration of experience - quality of fundamental decisions 2. Good coordination of work 3. Discipline and responsibility
Flaws
1. Low initiative 2. Incomplete return of functional professionalism (performance) 3. Management overload	1. Strengthening conservatism 2. The danger of bureaucracy is increasing 3. Reduced efficiency and flexibility
LOW DEGREE OF CENTRALIZATION	Advantages
1. Independence and initiative 2. Efficiency with good discipline and interest 3. Effect of leadership	1. Initiative 2. Prompt response to situations 3. The organization is focused on goals and results, and not on performing functions
Flaws
1. The difficulty of goal setting when interests change 2. Increases the likelihood of conflicts 3. The need for informal governance	1. Danger of duplication 2. The danger of avoiding problems and responsibility 3. Difficulties in coordination and control

It is noted that decentralization has a number of advantages . It increases the speed and objectivity of decision-making, makes the organization flexible and promptly responds to external changes, creates certain conveniences for employees and reduces the cost of office work, develops the abilities of managers and the creative, trusting principle in their activities. However, it was also noted that Decentralization also has a negative side . It can lead away from the main goals of the organization, weaken control and unity of action and, finally, can lead to the fact that a decision is not made at all.

It should also be taken into account that in real management practice there is many options both centralized and decentralized control. The degree of centralization can be different and can change in accordance with the changing circumstances of the organization's development, goals, scale, and quality of human resources.

Management can be flexible in terms of the distribution of powers, it can be built on the operational delegation of powers under certain circumstances. This is management, which is built on the provision of authority over situations and problems. There is no rigid consolidation of powers here; everything is determined by the situation. But even in this case, with any delegation, it still retains the organization and assignment of powers to certain links or officials.

Different concentrations of powers at the levels of the hierarchy determine a wide variety of types of management. It is the powers that make the system hierarchical. In a generalized view, this diversity can be reduced to the following types.

SO, according to the criterion of distribution of powers, the following types of management are distinguished.

Highly centralized management characterized by an increasing concentration of powers to the upper levels of the hierarchy of the management system. To the same extent, the possibilities of initiative and creativity and prompt response to changes in the situation are reduced to the lower levels of the management hierarchy.

Decentralized control - This is management with an extremely low degree of centralization. This distribution of powers in the management system in which the decisive level is the lower level of the hierarchy. Otherwise you can say: the main powers of the system’s life and development are transferred to the lower levels of the management system. At the same time, of course, the hierarchical structure of the management system is preserved, but at its upper levels only the powers to make individual decisions of a coordination or strategic type are concentrated.

A separate type of control can be situational management , in which decision-making authority is distributed depending on possible situations.

Main factors determining the degree of centralization or the procedure for distributing powers in the management system

Organizations evolve by making constant choices between centralization and decentralization. R. Ackoff explains the desire for centralization by the desire to coordinate the work of lower levels and use potential synergies, as well as the desire to prevent serious mistakes at lower levels of management, the consequences of which for the organization as a whole are not always visible and predictable. The pressure towards decentralization, in his view, is driven by the desire to facilitate rapid and effective initiatives and responses to change from those levels at which needs, threats and opportunities manifest themselves first, and to enrich the work of managers at lower levels of management by expanding their responsibilities.

When designing an organization, the following factors may influence the choice between centralization and decentralization.

1) scale of management. The larger the scale of management, the more difficult it is to implement centralized management. There is an overload of the central links of the information management system, insufficient elaboration of the specific circumstances and characteristics of the problem;

Enterprise size. The possible limits of an effectively managed organization have already been mentioned. Since in any case, there is a limit up to which centralization has an effect, then after exceeding this limit the question of decentralization arises.

2) Capital intensity of decisions made.In practice, companies’ regulatory documents even indicate a specific amount within which the manager can make certain decisions. Accordingly, if an organization allows a relatively large amount of this amount for the middle or lower levels of management, then it builds its activities on a decentralized basis.

3) Availability of appropriate personnel. The lack of willingness among managers at lower levels to take on greater responsibility cannot contribute to the development of decentralization processes, and can sometimes develop into hidden resistance to this process.

harmonious or disharmonious distribution of personnel by the level of professionalism in the hierarchy of the management system;

4) The striving of parts for independence. In social systems, such as an organization, the separation of a part from the whole is accompanied by the desire of this part to turn into a new whole, to become independent. The greater the difference between the former whole and the separated part, the more pronounced the tendency is.

5) the individual qualities of the manager and his work style. Management philosophy. The subjective belief of top management in one of the management approaches can hold the organization back from making a new choice for some time. For example, G. Ford Sr. is known for the fact that he was proud of his lack of any management titles other than the president and general manager of the company, and personally made as many important decisions as possible. In contrast, A. Sloan, Chairman of the Board of Directors of General Motors, brought the company to a high level when only 5% of decisions were made at the level of corporate headquarters.

6)use of technical means of information processing, presence or absence of an integrated information support system. Development of control technology. The widespread introduction of electronic information systems in organizations dramatically reduces the distortion of information and allows for a faster transition to decentralization.

-Uniformity of Policy. For example, the organization of banking or trade assumes that the same company in all its branches must build its relationships with consumers with the same quality. This, in turn, forces it to use highly standardized procedures.

-Organizational culture. The value orientations, norms and patterns of behavior acquired by an organization from the moment of its creation are, as a rule, stable in nature and cannot be ignored when choosing a designed system.

-Degree of division of labor. Highly diversified companies, as a rule, are built on a decentralized basis by product, project, customer, market, territory.

-Type of entrepreneurship. Every business has its own dynamics, characterized by different rates of change. It is known that a high rate of change is impossible under conditions of strict centralization. Thus, computer manufacturing companies are usually characterized by a high degree of decentralization in their activities.

-Changes in the external environment. State policy in the field of demonopolization, taxation, etc. may contribute to the development of one of the processes under consideration.

These factors act in conjunction and can determine both the need for increased centralization and the need for decentralization.

Centralization of management should be in the area of ​​regular assessment and monitoring of management development trends. It has a significant impact on the flexibility, efficiency and innovation of management, the formation of corporate culture, and the creation of a favorable socio-psychological climate.