A disadvantage of decentralization in organizations is higher overhead costs due to duplication.

Question

Quizplus · Accepted Answer

Decentralization in organizations involves delegating decision-making and authority to lower levels of the organization, which can result in duplication of tasks, resources, and functions across different departments and locations. This duplication can lead to higher overhead costs, such as additional salaries, equipment, and facilities needed to support each decentralized unit. Therefore, the statement is true.

A Disadvantage of Decentralization in Organizations Is Higher Overhead Costs