Which of the following is a disadvantage of a decentralized organizational structure?
A) Increasing the size of the corporate bureaucracy
B) Reducing a company's response times to changing external events
C) Discouraging lower-level managers and rank-and-file employees from exercising initiative
D) Putting the organization at risk if higher-level management is unaware of their actions
E) Creating more layers of management

Question

Quizplus · Accepted Answer

In a decentralized structure, decision-making is spread out, which can lead to situations where higher-level management may not be fully aware of the actions and decisions made by lower-level managers, potentially putting the organization at risk.

Which of the Following Is a Disadvantage of a Decentralized