Which statement is true regarding centralized authority?

Centralized authority is characterized primarily by the concentration of decision-making power at the top levels of management within an organization. This structure means that significant decisions are made by upper management rather than delegated to lower levels or departments.

This approach can lead to consistent decision-making and unified direction, as the leadership has a clear vision and command over policies and procedures. However, it limits the ability of employees at lower levels to influence decisions or respond quickly to local issues or emergencies.

The other options highlight aspects that are not typically associated with centralized authority. For instance, centralized authority is often less flexible because decision-making is not distributed, and employee empowerment is typically diminished as lower-level staff have limited control or influence over important decisions. Furthermore, while centralized structures may be effective in certain contexts, they are not universally effective across all organizations, large or small. Thus, option B accurately reflects the nature of centralized authority.