The disadvantages of a centralized organizational structure include:
A) lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative.
B) a loss of top-level management control.
C) putting too much decision-making authority in the hands of lower-level company personnel.
D) making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made.
E) impeding cross-unit coordination and the capture of strategic fits.

Question

Quizplus · Accepted Answer

Centralized organizational structures can lead to slower response times and discourage initiative among lower-level managers and employees because decision-making authority is concentrated at the top levels.

The Disadvantages of a Centralized Organizational Structure Include