Final answer:
Centralized decision-making refers to an organizational structure where decision-making authority is narrow in scope and located at the top level of management, forming a hierarchy of authority with a clear chain of command.
Step-by-step explanation:
The phrase that best fits the blank in the student's question is centralized decision-making. This concept refers to a business structure where the authority to make decisions is concentrated at the top level of management. In such organizations, a hierarchy of authority ensures that individuals or offices are in charge of others, forming a chain of command that extends from lower-level employees up to the highest authorities, such as the CEO. An employee's direct superior assigns tasks and holds responsibility for those in their charge, and this pattern repeats itself up the hierarchy.
For example, in a retail corporation like Walmart, a shift manager delegates tasks to employees and reports to the store manager, who is accountable to the regional manager, and so on, until reaching the CEO and the board members. This rigid structure contrasts with decentralized firms, which may allow for more autonomy at different levels within the organization. Businesses that embrace centralized decision-making often focus on core competencies, specializing in one or a few products to maximize their success.