Define "centralization" in the context of administrative theory.

Centralization refers to the concentration of decision-making authority at the top levels of an organization. This means that a select few individuals in higher management positions are responsible for making significant decisions for the entire organization, thereby retaining control and oversight over various functions and operations.

In a centralized system, the flow of information typically moves from the top down, with policies and directives originating from upper management. This can lead to streamlined decision-making processes since fewer individuals are involved in approvals and strategic direction. Additionally, centralization can ensure consistency in decision-making, as the same leaders are making all the important choices, which can be beneficial for aligning the organization’s goals and objectives.

On the other hand, options depicting distribution of decision-making across levels suggest a decentralized approach, which allows for more input and initiative from lower levels of the organization, promoting employee empowerment but potentially leading to inconsistencies. Similarly, the delegation of tasks to lower-level managers and a flat organizational structure imply a diffusion of authority rather than its concentration at the top, which contrasts with the definition of centralization. Thus, the key characteristic of centralization is the focus on a hierarchical structure where decision-making authority is centralized in higher management.