Centralization refers to the concentration of decision-making authority and control within a single entity or location. In a centralized system, power is held by a central authority, which can streamline processes and create uniformity in policies and procedures. This structure is often seen in organizations, governments, and businesses where a few individuals or a central body make key decisions. In contrast to decentralization, where power is distributed among various levels or locations, centralization can lead to quicker decision-making and clearer accountability. However, it may also result in slower responses to local needs and reduced flexibility, as all decisions must pass through the central authority.