Discuss the advantages and disadvantages of centralization

What will be an ideal response?

The advantage of centralization is that it lets top managers coordinate organizational activities and keep the organization focused on its goals.

Centralization becomes a problem, however, when top managers become overloaded and immersed in operational decision-making about day-to-day resource issues. When this happens they have little time to spend on long-term strategic decision-making, and planning crucial future organizational activities, such as deciding on the best strategy to compete globally, is neglected.