A disadvantage of the centralized organization is:
A) it lengthens response times by those closest to the market conditions because they must seek approval for their actions.
B) it does not encourage responsibility among lower-level managers and rank-and-file employees.
C) it discourages lower-level managers and rank-and-file employees from exercising any initiative.
D) it diverts authority away from those closest to,and most knowledgeable about,the situation for actions.
E) All of these.

Question

Quizplus · Accepted Answer

All of these options are disadvantages of a centralized organization. It can lead to delays in decision-making and responsiveness, limit employee initiative and responsibility, and take away decision-making power from those who are closest to the situation and have the most knowledge about it.

A Disadvantage of the Centralized Organization Is