decentralization

The dispersion of a population or industry away from a central point. A common form is counter-urbanization (in developed countries, the movement of industries and people away from cities). Examples in the UK include the move of the Department of Social Security to Newcastle and the DVLA to Swansea.

decentralization

Of a business or organization, reorganizing into smaller units, often on separate sites. For many businesses, decentralization involves decision-making by individuals or groups throughout an organization rather than at the centre or headquarters. Decision-making is therefore ‘devolved’ throughout the business, dispersing authority away from the centre of the organization. Decentralization provides certain advantages, such as quick decision-making, empowerment of line managers, and corporate flexibility at a local level.