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 ?
For those customers that decide to maintain sudo, PowerBroker for Sudo strives to simplify the management of the sudoers file and achieve compliance by providing centralized repository for multiple policy files with full version control and also centralizes indexed log data with a powerful reporting system as well.
Because paranoia runs deep in the heartland (as Neil Young once sang), if the IRS proceeds to centralize claims, it needs to be up front about why.
First point: It does make sense to centralize development of training.
Moreover, Beck argues that the bureaucracy's willingness to strengthen the role of local Stande in poor relief contradicts historians' assumptions about officials' single-minded desire to centralize power in the state.
Faced with budget cuts and staff decreases, the Internal Revenue Service is making plans to centralize and consolidate functions and offices.
Changes in technology--including the movement from independent local area networks (LANs) to corporate wide area networks (WANs)--have provided the infrastructure that allows the same organization to centralize its operations.
By delivering data storage capacity as a centralized utility you not only remove the data from the server and centralize it onto a network, but you can eliminate or greatly reduce the number of disk drives directly attached to workflow servers.
The ClearCube solution allows companies to take the computer off the user's desk, shrink it to a PC Blade and centralize the blades in a secure location.
Companies can also centralize their treasury operations to gain more control, and even outsource the payment and/or receivables process to reduce both fraud risk and processing time.

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