The major disadvantage of a decentralized organizational structure is that it can result in
A)increasing the size of the corporate bureaucracy.
B)reducing a company's response times to changing external events.
C)discouraging lower-level managers and rank-and-file employees from exercising initiative.
D)putting the organization at risk if higher-level management is unaware of their actions.
E)creating more layers of management.

Question

Quizplus · Accepted Answer

A decentralized organizational structure delegates decision-making authority to lower levels of the organization, which can lead to situations where higher-level management might not be fully aware of the actions taken by lower levels. This lack of oversight can put the organization at risk if those actions are not aligned with the overall strategy or if they are inappropriate.

The Major Disadvantage of a Decentralized Organizational Structure Is That