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 ?
In 1985, Buck-Gramco further modified the centralisation procedure and termed it radialisation.
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.
259 The number of jobs under threat at the DVLA in Coleraine if centralisation moves go ahead
There is a lack of empirical findings on the centralisation of different GAM activities and its association with GAM effectiveness and efficiency.
The concepts of centralisation and decentralisation are not paradoxical entities; therefore, the question never arises of choosing either centralisation or decentralisation.
As the former head of global IT strategy, architecture and standards at pharmaceutical giant Novartis, he has seen in detail how his own company has handled centralisation and globalisation, but he has also been able to pool the experience of other companies - Philips, Nestle, Toyota and UBS - to form a rounded picture of the challenges involved.
The Thurles stewards decided that Centralisation, who finished strongly in second in the first division of the amateurs' maiden hurdle, had not been allowed to run on his merits.
Centralisation has reduced self-reliant communities:At a recent public inquiry into its future planning strategy, the Brecon Beacons National Park Authority submitted a document which stated, 'The NPA recognises that the most sustainable pattern of development is one which encourages self-reliant communities which are not dependent on the use of the private car.
Now there is a growing rebellion in every corner of Scotland against the loss of hospitals, reductions in services and centralisation to the detriment of local communities.
PERMIT HOLDER John Coleman was fined Irpounds 800 and rider Denis Cullen banned for 28 days after an inquiry into the running and riding of Centralisation, a fast-finishing second in the first division of the amateur riders' maiden hurdle, writes Tony O'Hehir.
Our new one is written to a background of increasing globalisation and centralisation.