What is the major reason for centralizing services that handle planning and budget in an organization?

Centralizing services that handle planning and budgeting in an organization primarily allows for placing the tools of control in the hands of top management. This centralization ensures that strategic decision-making aligns closely with organizational goals, enabling top management to have an overarching view of planning and financial allocation. By centralizing these functions, leaders can enforce consistency in policies and priorities across different departments, facilitating better resource allocation and accountability.

Additionally, centralization aids in reducing discrepancies that may arise from having multiple departments making independent budgetary decisions. With control centralized, top management can more effectively monitor performance against established budgets and plans, ensuring adherence to the organization’s strategic objectives.

The other options, while potentially beneficial in their own rights, do not encapsulate the primary rationale for centralization. Systematizing office procedures may enhance efficiency but does not address the control aspect critical for senior leadership. Simplifying problems of the operating agency might improve operational efficiency, but it doesn't have the strategic alignment impact that centralization offers. Likewise, implementing checks and balances is important for governance but is not the fundamental reason driving the centralization of planning and budgeting services.