centralization


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Related to centralization: formalization

centralization

the vertical dimension of ORGANIZATION structure. Organizations are centralized when important decisions are largely taken by managers at the top of the organization. There is a persistent tension between DECENTRALIZATION and centralization organizations. Centralization of decisions is useful to provide central direction to the organization. However, it can mean that the organization cannot respond quickly to PRODUCT MARKET developments. Also, if lower level managers are precluded from making important decisions it can have negative effects on their job satisfaction. See ORGANIZATIONAL ANALYSIS.

centralization

the concentration of economic decision-making centrally rather than diffusing such decision-making to many different decision-makers. In a country, this is achieved by the adoption of a CENTRALLY PLANNED ECONOMY where the state undertakes to own, control and direct resources into particular uses. In a firm, centralization involves top managers retaining authority to make all major decisions and issuing detailed instructions to particular divisions and departments.

See U-FORM ORGANIZATION.

References in periodicals archive ?
Moreover, in several studies researchers have reported finding a negative relationship between structural factors (such as centralization and formalization) and innovative behavior (Aiken & Hage, 1971; Damanpour, 1991; Hurley & Hult, 1998; Pierce & Delbecq, 1977); however, these scholars did not include empowerment in their study and, consequently, the mediating role of empowerment in the relationship between organizational structure and innovative behavior was overlooked.
External fixation and centralization versus external fixation and ulnar osteotomy: the treatment of radial dysplasia using the resolved total angle of deformity.
This trial program of debt decentralization indicates that China is moving from debt centralization to debt decentralization.
Researchers previously assumed that this net did not evidence centralization, that is, no local concentration of nerve cells.
With a smooth path to centralization, the Panel is more likely to say yes to an MDL.
Latvijas Valsts Radio un Televizijas Centrs (Latvian State Radio and Television Center) CEO Janis Bokta is wary about centralization of the management of state-owned companies, if all such companies are managed by one state institution.
The great jump in centralization came with the French Revolution, which sought to eviscerate political authority from all independent social authorities.
When corrupt officials operate in both sectors, the benefits of bureaucratic centralization critically depend on whether it occurs within or across these two sectors of the economy.
Due to advances in treasury technology, companies can now immediately pinpoint a global position, resulting in better decision-making and fund centralization activities.
Of course, while there is something to be said for the centralization of some aspects of an organization, decentralization is helpful, as well.
My understanding is that the nervous system of a jellyfish contains no true nerves and no centralization.
At your fingertips: Simple Remote's complete centralization and management of every deal and document with the functionality of a built in custom calculator.