Centralization

can give top$-$level managers the means to bring about needed major organizational changes by concentrating power and witherity in one individual or a management team.

gives top management time to focus on critical issues by delegating more routine issues to lower$-$level managers.

can be used to establish relatively autonomous, self$-$contained subunits within an organization.

permits greater flexibllity because decisions do not have to be "referred up the hierarchy" unless they are exceptional in nature.