Which of the following is a potential problem with decentralizing decision-making authority?
A)Possible synergies might be missed
B)Divisions, functions, or teams may lose sight of organizational goals
C)Organizational performance might suffer
D)Lack of communication among functional managers might occur
E)All of these choices are correct.

Question

Quizplus · Accepted Answer

All of the choices listed can be potential problems with decentralizing decision-making authority. As decision-making is pushed down the organizational hierarchy, communication and coordination between different levels and functions become crucial. Without proper communication, divisions or teams might lose sight of organizational goals, miss potential synergies, and lead to a decline in organizational performance.

Which of the Following Is a Potential Problem with Decentralizing