Structure Transformation at ONGC
Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.
Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey. Mc Kinsey's mandate was to evolve and organisational structure that was far more responsive to its business needs then that based on business groups.
The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on field. Also, since responsibilites were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalities often took precedence over the resquirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an assetbased approach with clearly-defined responsibilities in its presentation titled 'Organisation Transformation Project'.
Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out. Finally, the first control over all service personnel working with asset team was vested in asset managers, on grounds that being responsibility for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out.
With reference to the above paragraph, explain the concepts of Centralisation and Decentralisation.

Explanation

Centralisation It refers to concentration of authority in a few hands. In other words, it means the policy of retention of authority by the top management.
Decentralisation It refers to the policy of systematic dispersal of authority among all departments and at all levels of management for taking decisions at the appropriate levels.