Ans: Centralization refers to the degree to which decision-making is concentrated at a single point in the organization. Typically, it’s said that if top management makes the organization’s key decisions with little or no input from lower-level personnel, the organization is Centralized. Employees are less likely to feel alienated from those who make the decisions that influence their job lines in a Decentralized organization since action can be taken more rapidly to remedy problems and more individuals are involved in the decision-making process.