Editing Centralisation (section)

==Centralisation in business studies==
[[File:Global Brain - centralized information processing.gif|alt=An animation representing centralized information processing|thumb|An animation representing centralised information processing{{Relevance inline|date=February 2022}}]]
Most businesses deal with issues relating to the specifics of centralisation or decentralisation of decision-making. The key question is either whether the authority should manage all the things at the centre of a business (centralised), or whether it should be delegated far away from the centre (decentralised).

The choice between centralised or decentralised varies. Many large businesses necessarily involve some extent of decentralisation and some extent of centralisation when it begins to operate from several places or any new units and markets added.<ref>Riley, J. (2014). ''Centralised versus decentralised structures | Business | tutor2u.'' [online] Beta.tutor2u.net. Available at: http://beta.tutor2u.net/business/reference/centralised-versus-decentralised-structures {{Webarchive|url=https://web.archive.org/web/20151008030249/http://beta.tutor2u.net/business/reference/centralised-versus-decentralised-structures |date=2015-10-08 }} [Accessed 5 Nov. 2015].</ref>

According to a 2021 study, "firms that delegated more power from the central headquarters to local plant managers prior to the Great Recession outperformed their centralised counterparts in sectors that were hardest hit by the subsequent crisis."<ref>{{Cite journal|last1=Aghion|first1=Philippe|last2=Bloom|first2=Nicholas|last3=Lucking|first3=Brian|last4=Sadun|first4=Raffaella|last5=Van Reenen|first5=John|date=2021|title=Turbulence, Firm Decentralization, and Growth in Bad Times|url=https://www.aeaweb.org/articles?id=10.1257/app.20180752&&from=f|journal=American Economic Journal: Applied Economics|language=en|volume=13|issue=1|pages=133–169|doi=10.1257/app.20180752|s2cid=234358121|issn=1945-7782|hdl=10419/161329|hdl-access=free}}</ref>

===Features of centralisation in management===
# Top level managers concentrate and reserve the decision-making power.
# Execution decided by the top level management with the help from the other levels of management.
# Lower levels management do their jobs under direct control of the top managers.<ref>BMS Team, (2013). ''Important Features of centralization | BMS.co.in.'' [online] BMS.co.in : Bachelor of Management Studies. Available at: http://www.bms.co.in/important-features-of-centralization/ [Accessed 5 Nov. 2015].</ref>