Centralization refers to the hierarchical level within an organization empowered to make decisions. If decision-making is maintained at the highest level, the organization is centralized; if it is delegated to lower levels of organization, it is decentralized (Daft, 2010: 17). What is a centralized administration? Definition: Another well-known principle of the modern management system is centralization. Centralization means, in simple language, the concentration of power and authority in a single centre. The process of transferring administrative powers from a lower level to a higher level is called centralization. The choice between centralized or decentralized is different. Many large companies are necessarily associated with a degree of decentralization and a degree of centralization when they start working from multiple locations or when they are added to new units and markets.  The term has many meanings in several areas. In political science, centralization refers to the concentration of power of a government, both geographically and politically, on a centralized government. Decentralized organizations delegate authority to the chain of command and thus reduce the speed of decision-making.
The seller usually receives a copy of the last contract by email upon purchase, but this employee is not in the office for next week. The seller will find an email with a contract template that sent him the purchase two weeks ago for another customer. As the seller needs the document for a meeting to be held tomorrow, he chooses to use this version. Let`s look at the challenges posed by this decision and the benefits of centralizing your agreements. What is an example of centralization? This concept defines and describes different decision models within organizations. It examines the strengths and weaknesses of centralized and decentralized systems and provides practical examples based on real industrial cases. CLM software, which centralizes access to contract data, allows you to track the activity of the seller and all employees to take into account the extent of your contractual processes. Visibility allows you to answer questions about who/what/when for each contract process. As written v.I. Imperialism, the highest level of capitalism, “the remarkably rapid concentration of production in larger and larger enterprises is one of the most characteristic characteristic characteristics of capitalism.”  He studied the development of production and decided to develop the concept of production as a centralized framework, from isolated workshops and scattered in large factories that drove capitalism into the world. This is guided by the idea that once the concentration of production develops at a certain level, it will become a monopoly, like the party organizations of the cartel, the union and the trust.  Most companies deal with issues related to the specifics of centralization or decentralization of decision-making.
The key question is whether the Authority should manage all things at the centre of a (centralised) enterprise or whether it should be delegated away from the (decentralized) centre. Centralized management resembles a form of dictatorial leadership in which employees are only expected to produce results based on what senior managers would assign them. Employees are not able to contribute to the organization`s decision-making process and are only implementing decisions made at a higher level. If employees have difficulty implementing some of these decisions, managers will not understand because they are only decision makers and not decision-makers. The result of these measures is a decline in performance, as employees are not motivated to implement decisions made by senior managers without the input of staff at a lower level. The centralized structure of the economy is a kind of organizational structure in which decision-making and control power is at the upper level of the pyramid; very few important leaders.