As companies become established and shift from a centralized to a decentralized model, employees start to become empowered to own and manage certain processes. While this comes with its own set of implementation challenges initially, it is usually considered worthwhile in the long run. Even so, there could be some drawbacks to this type of management system. Which of the following represents a drawback of decentralization?
A) Certain activities are likely to be duplicated across departments, and that can mean that money will be wasted.
B) High-level managers find they have increased distance from day-to-day operations and now have greater freedom to think strategically.
C) Managers will likely show less initiative when they are in control and have the authority to make decisions for their own business unit.
D) The organization chart is likely to take on a wide but shallow appearance from top-to-bottom indicating increased bureaucracy.

Question

Quizplus · Accepted Answer

This question requires that familiarity with the drawbacks of decentralized management systems. While some of the choices above appear to be correct, there is one aspect of three choices that makes the option either inaccurate or not a drawback. Choice A is the only one of the four that represents a true drawback of a decentralized management system.

As Companies Become Established and Shift from a Centralized to a Decentralized