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 ?
This is not about centralistic, bureaucratic control like the BHB offers, but about having innovative ideas and working together to increase both businesses.
Ryaas Rasyid, who is one of the initiators of the said regional autonomy law, are of the opinion that the revised version is essentially an opposite of the original because, according to them, the former is centralistic in spirit while the latter is decentralizing.
The national political level is becoming too narrow for dealing with the large social and economic problems of the Welfare State, and at the same time too wide and centralistic to react fiexibly to social and economic developments on the local and regional level.
A fundamental restructuring of the centralistic policy and of the financial relationships within the national Welfare States is required (Netherlands Scientific Council for Government Policy, 1990).
Many ideas came to the fore -- from the centralistic model to the suggestion that the empire be developed into a federalized power.
Thought, a centralistic hierarchy of subordination, does not provide systems thinking leading to holism, but networking and co-operation, especially the interdisciplinary one, does (Zenko, 1999; Rosi, 2004; Udovicic, 2004; Parharkangas et al.
But if the plan to put all HPH areas under Perum was seen as too centralistic, the system could be changed with Forest Management Body (BPH).
True, a powerful and functioning centralistic hierarchy can always cut off the sick part of its body to preserve the `progress' of the functioning rest, even if this operation endangers the health of the whole pyramid.