Centralized management refers to a structure where decision-making authority is concentrated at the top levels of an organization. In this system, a few individuals or a single entity, such as executives or management teams, make key decisions that affect the entire organization. This approach can lead to consistent policies and streamlined operations, as directives flow from the top down. However, centralized management can also limit input from lower-level employees, potentially stifling creativity and responsiveness. Organizations may face challenges in adapting to local needs or market changes, as decisions are made without direct input from those on the front lines, such as employees or customers.