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 ?
class="MsoNormalOn the centralisation of procurement of ICT supplies, the policy was informed by the need for standardisation of the relevant goods and services to ensure economies of scale as well as ease in system administration and maintenance.
In 1985, Buck-Gramco further modified the centralisation procedure and termed it radialisation.10 This was introduced as a means of correcting the ongoing muscle imbalance across the carpus in these cases.
AWe Q Campaigners want a full judicial review into the centralisation plans.
Just as there are conditions for which centralisation is a good response, there are times when it is considerably more conducive to decentralise: when the motivation and creativity of many people is particularly critical either to serve growth, or because it is the nature of the industry.
Assange said that centralisation of information and centralisation of power is a pretty concerning thing.
"Further centralisation will be a further blow to the local economy and will impact heavily on Coleraine."
Keywords: Retail internationalisation * GAM activities * Centralisation * Effectiveness * Efficiency
I hope the Daily Post, which has been such a good advocate for local NHS services over recent years, will not be taken in by the Welsh Government's PR offensive to soften up public opinion for major centralisation of services across the area by conflating various issues, no matter how serious.
Cost of decision making and implementation in case of decentralised operations is usually lower than in case of centralisation, since it would also require central coordination.
Its message is essentially: We're opposed to centralisation of power, unless that centralisation of power is in London.
The business says the centralisation will enable it to provide clients with an even more streamlined and efficient service.
HEALTH campaigners are to protest against cuts and centralisation in Glasgow next month.