centralization

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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 ?
As a result, when overly centralised states like Pakistan try to erase social and political differences within a diverse society like theirs, in the name of creating a 'true Pakistani', the project is bound to be challenged.
A radical decentralisation is indeed needed as England is by far the most centralised state in western Europe despite the recent fanfare over localism, City Deals and local growth funds.
There is a continuum from a highly centralised state to a highly decentralised, almost confederal state and we all need to find the right balance that commands consensus amongst all those within, even as the consensus shifts and evolves.
England remains the most centralised state in Western Europe, and will be even with City Deals.
This has started a serious review by many Sunni politicians of the original desire to see a strong and centralised state.
Another characteristic of the old Pakistan was a highly centralised state - often ruled by military strongmen - that was controlled by a Punjabi-dominated establishment in Rawalpindi/Islamabad.
Mr Clegg said: We've already identified big areas where substantial long-term savings can be made - reducing the bureaucracy of Labour's centralised state, databases and agencies, cutting the cost of politics - changing our electoral system and having 150 fewer MPs.
Playing on nationalism served Maliki well in a provincial vote this year, when his call for a strong centralised state helped his allies win throughout the Shiite south.
We may live in an increasingly centralised state where everything appears to be controlled from London but since when has the government had powers to dispose of our schools?
The centralised state intelligence networks, now headed by Saddam's second son Qusai.
He has been strong enough to let go of power from Whitehall, a process of decentralising the most centralised state in Europe.