What type of decision making is characterized by decisions made by top management?

Centralized decision making is characterized by decisions made by top management, where the authority and responsibility for decision-making reside largely at the higher levels of the organizational hierarchy. In this structure, top executives have the final say on significant decisions and strategic planning, which often leads to a uniform vision and direction for the organization. This approach can enhance consistency in decision-making across the organization and can streamline processes since fewer individuals are involved in the decision-making circle.

In a centralized decision-making system, managers and employees at lower levels typically have little to no autonomy in making decisions. This can be beneficial in situations where quick, decisive action is necessary or when a clear directive is needed from leadership. It allows top management to maintain control over critical decisions that affect the organization as a whole, making it well-suited for environments that require a coordinated response.

The other types of decision making mentioned involve varying degrees of authority distributed among different levels or groups within an organization, focusing on collaboration or participation from a broader range of stakeholders, which is not the focus of centralized decision making.