A possible disadvantage of a decentralized organization is that
A)decisions are made more slowly.
B)divisional managers are less motivated.
C)divisional managers are not specialized.
D)divisional managers will run their divisions to benefit themselves at the expense of suboptimizing the entire organization.

Question

Quizplus · Accepted Answer

Decentralized organizations give more autonomy and decision-making power to divisional managers. This can lead to divisional managers focusing only on their own division's success and neglecting the overall goals and objectives of the organization. This can result in suboptimization and lower performance for the organization as a whole.

A Possible Disadvantage of a Decentralized Organization Is That