Centralized authority means which of the following?

• A. Decisions are made by lower-level managers only.
• B. Key decisions are made by top managers.
• C. All decisions must be approved by a board.
• D. Decisions are distributed evenly across units.

Answer: (B)

Centralization focuses decision-making power at the top levels of an organization. That’s why the best description is that key decisions are made by top managers. When decisions are left to lower-level managers, or must be approved by a board for every action, or are distributed evenly across units, the structure is decentralized or more distributed in authority, not centralized. In sport and recreation, centralization helps ensure uniform policies and strategic alignment across the organization, with top leaders guiding the major choices.