Centralization 中央集權化

Centralization occurs when authority is centralized among managers at the upper levels of the organizational hierarchy, such that they make all of important decisions

HK Monetary Authority makes all the fund and monetary policies for HK in order to stabilize the currency and economic environment

McDonald's centralizes the number of operations in producing its different burgers in standard times.

Toyota centralizes corporate strategy for its international setting for car production plants and TPS for high quality consistence, and just-in-time inventory for low cost concern.

Centralization has many advantages as it allows easier coordination of all organizational activities needed to pursue a company's strategy. If managers at all levels can make their own decisions, then overall planning becomes extremely difficult and the company may lose control of its decision making.

In general centralization also means that decisions fit broad company objectives. As companies grow, their different parts may operate in a different manner, and then centralization can limit the threat of this problem.