Sample Paper on Centralization


The decision to have a singles centralized location facility for controlling organization activities comes as a result of increased costs of operation. The reason behind this is that there is a need to concentrate power in the top management while using a single facility for multiple purposes. Communication is based on a vertical structure. Another reason for centralization is that managers have ample time to focus and plan for future activities.  Information coming from employee aids the management in making decisions that affect the organization in a great way. The decision-making process includes the strategic managers, technicians, and middle-level managers. Technology plays a very important role in the process of coming up with a formidable decision. First, technology connects different organization departments in a pool where the firm information is stored. This enhances the gathering of crucial data that will help ascertain the organization’s progress and needs both in the short run and long-run period (Organization for Economic Co-operation and Development, 2011).

Secondly, technology enables firms to maintain an updated financial record. This may include employee’s personal data and their performance in carrying out their designated duties. The management will evaluate data available to make critical decisions. Third, cloud computing can help share crucial documents and data within an organization at a lower cost. The utilization of this technology leads to higher organizational satisfaction. An example of the centralized organization is general motors’. The top-level managers make decisions on behalf of the organization, which utilizes its facilities for the production of multiple goods. Employees take direction from the manager; they execute the plan to make sure that all the organization’s activities take place as planned. The reason as to why general motor engaged in this initiative is to enhance its public image as well as maintain control over its dealers.  Thus, the organization ensures that quality products are delivered to their clients at any given time (Stubblefield, 2012).


Organization for Economic Co-operation and Development. (2011). OECD economic surveys. Paris: Author.

Stubblefield, M. (2012). Chilton’s General Motors: Chevrolet Express & GMC Savana full-size vans 1998-10 repair manual. Newbury Park, CA: Haynes.