Which of the following is a disadvantage of decentralization?
A)It results in increased customer response time.
B)It allows only the top management to make decisions.
C)It demotivates employees as the decision making powers are not delegated.
D)It results in problems in achieving goal congruence.

Question

Quizplus · Accepted Answer

Decentralization can result in difficulties in achieving goal congruence, as departments or units may have conflicting objectives or priorities. A disadvantage of decentralization is not increased customer response time, as local decision-making can often lead to better and faster responses to customer needs. Decentralization also does not restrict decision-making to top management, and can empower employees by delegating decision-making powers to them. However, it is possible that some employees may feel demotivated if decision-making responsibilities are not clearly defined or if they do not have the necessary resources or support to carry out their delegated tasks.

Which of the Following Is a Disadvantage of Decentralization