An important disadvantage of decentralization is that managers may engage in suboptimal behavior.

Question

Quizplus · Accepted Answer

Decentralization gives managers more autonomy and decision-making power, but it also means there may be less oversight and control from higher management. This can lead to managers prioritizing their own goals and interests over the overall objectives of the organization, and making decisions that are not in the best interest of the company as a whole.

An Important Disadvantage of Decentralization Is That Managers May Engage