A study at the Slumber Inn Co. identified poor employee morale. Employee respondents indicated frustration with their inability to deal directly with customers' concerns and complaints. These employees feel that if they were empowered with the authority to make decisions, customer satisfaction would dramatically increase. This illustrates one of the disadvantages of decentralized authority.

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This situation illustrates a disadvantage of centralized authority, where employees lack the power to make decisions, leading to frustration and potentially lower customer satisfaction.

A Study at the Slumber Inn Co