What management concept describes the concentration of decision-making authority at higher levels of management hierarchy?
ADecentralization
BCentralization
CDelegation
DDepartmentalization
Explanation
• Centralization refers to the structural condition where top executives retain primary authority for decision-making across an organization.
• Decentralization pushes decision-making authority down to lower-level managers and operational staff close to action.
• The ideal balance between centralization and decentralization depends on environmental volatility, organization size, and manager capability.
Exam Relevance
- Topic: Organizational Structure
- Subtopic: Centralization

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