Which of the following is a disadvantage of decentralization?
A) Less timely decisions are able to be made on a day-to-day basis.
B) Decreased job satisfaction for lower-level managers.
C) Lack of coordination and communication between segments.
D) Lower training costs for lower-level managers.

Question

Quizplus · Accepted Answer

Decentralization can lead to each segment operating independently and not communicating effectively with other segments, resulting in fragmented decision-making and a lack of coordination. This can create inefficiencies and hinder the organization's overall effectiveness. Options A and B are incorrect because decentralization can lead to quicker decision-making and increased job satisfaction for lower-level managers who have more autonomy and responsibility. Option D is incorrect because decentralization may actually result in higher training costs as each segment may require specialized training programs.

Which of the Following Is a Disadvantage of Decentralization