Which term describes a system in which power is concentrated at a single point in the organization?

Which term describes a system in which power is concentrated at a single point in the organization?

• A. Democratic
• B. Empowerment
• C. Centralization
• D. Chain of Command

Answer: (C)

Centralization is the idea that power and decision-making authority are held at the top of the organization, with fewer decisions devolved to lower levels. This means top managers set the direction and policymakers, and others carry out those decisions with limited room for local discretion. This setup can lead to uniform policies and faster top-down action when a clear, centralized plan is needed, but it can also slow responses to local needs and reduce motivation if employees feel they have little influence. The other terms describe different concepts: democratic implies broad participation in decisions, empowerment means giving more autonomy to subordinates, and the chain of command maps out who reports to whom rather than where power is concentrated.

Centralization is the idea that power and decision-making authority are held at the top of the organization, with fewer decisions devolved to lower levels. This means top managers set the direction and policymakers, and others carry out those decisions with limited room for local discretion. This setup can lead to uniform policies and faster top-down action when a clear, centralized plan is needed, but it can also slow responses to local needs and reduce motivation if employees feel they have little influence. The other terms describe different concepts: democratic implies broad participation in decisions, empowerment means giving more autonomy to subordinates, and the chain of command maps out who reports to whom rather than where power is concentrated.