Final answer:
Centralization refers to how concentrated decision-making power is within an organization. It is a significant characteristic of a bureaucratic structure, often resulting in a hierarchy where top-level executives make most decisions. The correct answer to the question is C) Centralization.
Step-by-step explanation:
Centralization refers to the degree to which decision making is concentrated at a single point in the organization. This concept involves having a small number of individuals at the top of an organizational hierarchy making most of the significant decisions. In situations of high centralization, lower-level employees have less freedom to make decisions and must follow the directives from those at the top. On the other hand, organizations with low centralization delegate decision-making power and authority throughout the levels of the organization, allowing for more input from a diverse group of employees.
The structure of a bureaucracy often sees centralization as one of its defining characteristics, with a clear hierarchy of authority and a chain of command. For example, in a hierarchical company, decisions might flow from executives down to managers and then to rank-and-file employees, which exemplifies high centralization. This can provide for efficient decision-making but may also have its drawbacks in terms of flexibility and responsiveness to individual circumstances.
Therefore, the correct answer to the question is: C) Centralization.