Centralization is a method of organizing and management where management and decision-making powers are concentrated in the hands of the top management of the organization. Centralization allows on the one hand an unified decision “from the center” on the other hand, limits the autonomy of organizational units and may reduce flexibility of the decision.
Centralization may concern all decisions and powers, or may be centralized only selected managerial functions.
Use of centalization in practice: Centralization is used during periods when it is necessary a single procedure from a single location, such as in crisis management.
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