A primary disadvantage of a centralized organizational structure is that it results in
A)lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative.
B)losing top-level management control.
C)putting too much decision-making authority in the hands of lower-level company personnel.
D)making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made.
E)impeding cross-unit coordination and the capture of strategic fits.

Question

Quizplus · Accepted Answer

A centralized structure typically involves decision-making authority being concentrated at the upper levels of the organization, which can result in slower response times and lower levels of initiative among lower-level managers and employees. They may feel that their input is not valued and hesitate to take action without explicit direction from higher-ups.

A Primary Disadvantage of a Centralized Organizational Structure Is That