Final answer:
An organization where high-level managers make important decisions exhibits centralized authority, signifying a top-down decision-making structure.
Step-by-step explanation:
When important decisions are made by high-level managers, the organization has centralized authority. This type of authority structure involves a top-down approach where decisions flow from the upper levels of the organizational hierarchy to the lower levels. This contrasts with a decentralized authority, where decision-making power is distributed among various levels within an organization, often allowing for more flexibility and faster responses to local conditions.
Centralized organizations typically exhibit a clear chain of command, which is necessary for certain types of large-scale coordination and consistent policy implementation. Companies and governments can both show characteristics of centralization. For example, in a mayor-council system, centralization would be indicated by the mayor exerting strong executive power over the city's operations, though this position is still accountable to the voters and the city council members.