A disadvantage of decentralization is that
A)If lower-level managers do not understand the company's strategies and goals,they may make decisions that are not in the best interest of the organization as a whole.
B)Two or more operational managers may evaluate and make the same decision,duplicating their efforts.
C)Managers tend to focus on their own units and often lose contact with others in the organization.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All of the answer choices are correct and reflect potential disadvantages of decentralization. Lower-level managers may lack a comprehensive understanding of the organization's strategies and goals, which can lead to decisions that are not aligned with the company's long-term objectives. Additionally, without clear communication and coordination between multiple operational managers, there may be duplication of efforts and potential inefficiencies. Finally, with a focus on their own units, managers may lose sight of the organization's overall goals, and this can hinder effective decision-making.

A Disadvantage of Decentralization Is That