Which of the following is a disadvantage of decentralized operation?
A)It does not allow managers to become experts in their area of operation.
B)Top management has less time to devote to long range strategic planning.
C)It does not allow managers closest to the operations to make decisions.
D)It may result in duplicate assets and expenses.

Question

Quizplus · Accepted Answer

Decentralized operation may lead to duplication of assets and expenses because each division or department may choose to invest in similar resources or adopt similar procedures. This redundancy can be costly for the organization. The other options are not necessarily disadvantages of decentralized operation. For example, managers can still become experts in their area of operation in a decentralized system, top management can still make time for long range planning, and decentralized decision making can empower managers closest to the operations to make faster and better decisions.

Which of the Following Is a Disadvantage of Decentralized Operation