In centralized decision-making, where is authority concentrated?

In centralized decision-making, where is authority concentrated?

• A. At the top levels of management
• B. In local subsidiaries
• C. Among frontline employees
• D. In independent regional offices

Answer: (A)

Centralized decision-making concentrates authority where senior leadership sets the direction for the whole organization. In this setup, top levels of management make the major strategic decisions, approve key actions, and guide policy, while lower levels implement those directives rather than determine them. Local subsidiaries, frontline employees, or regional offices may carry out instructions, but they do not hold the primary decision rights in a centralized system. This is why the top levels of management are the correct locus of authority.

Centralized decision-making concentrates authority where senior leadership sets the direction for the whole organization. In this setup, top levels of management make the major strategic decisions, approve key actions, and guide policy, while lower levels implement those directives rather than determine them. Local subsidiaries, frontline employees, or regional offices may carry out instructions, but they do not hold the primary decision rights in a centralized system. This is why the top levels of management are the correct locus of authority.