Centralized Management

Centralized management refers to a system where decision-making authority and control are concentrated at a single point or within a small group at the top of an organization. In this structure, leaders set policies and procedures that guide the entire organization, which can promote consistency and synergy. However, it may also lead to slower responses to change since all decisions must filter through the center. This approach contrasts with decentralized management, where decision-making is distributed among various levels or departments, allowing for more responsive and flexible operations.