Which of the following is a disadvantage of decentralization?
A) Decisions made by one manager may negatively affect the profitability of the entire company.
B) Decentralization helps retain quality managers.
C) Managers closest to the operations make decisions.
D) Managers are able to acquire expertise in their areas of responsibility.

Question

Quizplus · Accepted Answer

Despite the advantages of decentralization, one disadvantage is that decisions made by one manager may negatively affect the profitability of the entire company. Since each manager has a certain degree of autonomy, they may not always make decisions that are in the best interest of the company as a whole.

Which of the Following Is a Disadvantage of Decentralization