Case Interview Prep

Answer: C - Centralization is when decisions are made from a central point in the organization, usually upper management.

Key Takeaway: When an organization decides that decisions must be made at a high level in the organization, this is called centralization. In addition to decision making occurring within the highest levels of the hierarchy, centralization also often includes the authority to implement those decisions also residing at the highest levels. Centralization structures work well in situations where decisions are mission critical and can only be made my specialized personnel.