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 distributed, which can lead to higher-level management being unaware of actions taken by lower-level managers, potentially putting the organization at risk.

Which of the Following Is a Disadvantage of a Decentralized