centralization

In business, a form of organization where decision making for the whole business is taken by individuals or groups of people at the centre of the business. This compares with ‘decentralization’, where decision making is devolved throughout the whole business.

centralization

System of concentrating administrative functions in the hands of the principal departments of the state. Centralization seeks to establish uniformity in institutions and standards of services offered by state organizations. It has frequently been ideologically associated with socialism or communism, but is also widely associated with increasing government intervention in the affairs of society, especially during the 20th century. In political science centralization is the exact opposite of laissez faire.

The primary functions of the state, which, according to the philosopher Herbert Spencer, comprised keeping order within the territory of the state, and of defending its borders from external aggression, have in more recent times greatly expanded. As result, much that was formerly unregulated or left to the discretion of local governing bodies has been transferred to state departments.

Critics and opponents of centralization have often resorted to demands for greater regional autonomy within states and in some cases have embraced separatist views involving the legal and economic independence of parts of existing states. In Britain, for example, the Labour government elected in May 1997 passed legislation creating the Scottish Parliament and National Assembly for Wales to which certain legislative powers will be devolved by Westminster.

Centralization, like bureaucracy, almost inevitably creates problems for and is potentially dangerous to democratic government and personal liberty, but it remains part of the constant struggle between democracy and liberty on the one hand and efficient and effective government on the other.

centralization

Concentration of decision-making powers in one part of an organization, usually the head office. Centralization is the opposite of decentralization. Centralization results in less empowerment for the workforce although it does ensure the organization takes a consistent policy line.