Centralization is the degree to which decision making takes place at upper levels of the organization. If top managers make key decisions with little input from below, then the organization is more centralized.

Centralization decision making based at the top of the management hierarchy.

Centralization is a philosophy of organization and management that focuses on the selective concentration of authority within an organization structure.

Webster Dictionary Meaning

1. Centralization
- The act or process of centralizing, or the state of being centralized; the act or process of combining or reducing several parts into a whole; as, the centralization of power in the general government; the centralization of commerce in a city.
Share it:  Cite

More from this Section

  • Classical view
    The view that management’s only social responsibility is to maximize profits, is called ...
  • Fee-for-service plan
    Fee-for-service plan traditional form of health insurance in which the insured chooses ...
  • Financing section
    Financing section is the section of a business plan that demonstrates the cost of the ...
  • Operational planning
  • Job specification
    A job specification states the minimum qualifications that a person must possess to successfully ...