In a centralized organization there is a concentration of all authority at the top of the company hierarchy (at the top). This is when most decisions are made by leaders, ie people who are strategically positioned at their higher hierarchical levels. This causes a reduction in the centers that will make the decisions. From this point of view, centralization means that there is an authority that will decide what is needed, and that person is located at the very top of the hierarchical pyramid of the company.
In other words, in this type of organization, high-level executives make most decisions and move them to lower levels for implementations.
