Which aspect of an organization does centralization focus on?

Centralization specifically refers to the concentration of decision-making authority within an organization. This means that in a centralized structure, key decisions are made by a small group of individuals or at a single point in the organization, often at the top levels of management. This approach can streamline decision-making and provide a unified direction for the organization, which can be particularly beneficial in maintaining consistency and control over operations.

In contrast, the other aspects mentioned do not encapsulate the core function of centralization. Employee engagement typically refers to how invested and involved employees feel regarding their roles and the organization, but it doesn't directly address who makes decisions. The physical location of departments pertains to the structural layout of the organization and where departments are situated, and while this can impact communication and collaboration, it is not the focus of centralization. Lastly, funding sources refer to the financial aspects of an organization and where its money comes from, which is not related to the structure of authority in decision-making. Thus, the main focus of centralization is on who holds the power to make decisions within the organization.