Centralization

CENTRALIZATION IS THE PROCESS THROUGH WHICH AN ORGANIZATION'S ACTIVITIES GET CONCENTRATED INSIDE A SPECIFIC GEOGRAPHICAL AREA OR SET OF INDIVIDUALS, PARTICULARLY THOSE ACTIVITIES INVOLVING PLANNING AND DECISION MAKING, AS WELL AS THE FORMULATION OF STRATEGY AND POLICIES. IT IS ALSO A HIERARCHICAL ORGANIZATIONAL STRUCTURE, MEANING THAT ONLY TOP MANAGEMENT MAY MAKE DECISIONS, AND THAT EVERYONE ELSE MUST OBEY THEM. IT IS THE CONCENTRATION OF ADMINISTRATIVE POWER IN THE CENTRAL GOVERNMENT AT THE EXPENSE OF LOCAL SELF-GOVERNANCE IN POLITICS. AMONG THE NUMEROUS DRAWBACKS OF CENTRALIZATION IS BUREAUCRATIC LEADERSHIP, WHICH DISCOURAGES INITIATIVE, SLOWS DOWN DECISION-MAKING, LACKS SUFFICIENT STABILITY TO CHANGE, PROMOTES CONFORMITY, AND LESSENS SPECIALIZATION. "TODAY WE KNOW THAT CENTRALIZATION AND BIG BUREAUCRACIES HAVE NOT, AS PROMISED, BEEN THE ANSWER FOR PROMOTING BETTER OPPORTUNITIES FOR SOCIETY." - CARLOS SALINAS DE GORTARI