Question

What is centralisation?

Explain the terms centralisation.

Answer 1

The term “centralisation of authority” describes the methodical and regular retention or concentration of decision-making power at the highest or most senior levels of management. When upper management maintains complete control over practically all organisational decisions, the organisation is considered to be centralised. One or a small number of top-level managers make all decisions about particular issues in a centralised organisation. Middle and lower level managers in such an institution are given relatively limited authority. For direction and training in their daily tasks, they must rely on upper management. Their daily routines are supposed to be devoid of initiative and independence. All organisational operations are strictly supervised and controlled by the senior management.