The degree to which decision making is confined at a single point in an organization is described as centralization. In a centralized structure, decision-making authority is concentrated at the top levels of management, leading to uniformity in decisions but potentially reducing responsiveness to local needs. Conversely, decentralization allows for more distributed decision-making, empowering lower levels of the organization to make decisions. The balance between centralization and decentralization can significantly impact an organization's efficiency and adaptability.
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