Which of the following is a disadvantage of a decentralized organizational structure? A. Increasing the size of the corporate bureaucracyB. Reducing a company's response times to changing external eventsC. Discouraging lower-level managers and rank-and-file employees from exercising initiativeD. Putting the organization at risk if higher-level management is unaware of theiractionsE. Creating more layers of management

Question

Business

Cullen Mata

31 August, 09:51

Which of the following is a disadvantage of a decentralized organizational structure? A. Increasing the size of the corporate bureaucracyB. Reducing a company's response times to changing external eventsC. Discouraging lower-level managers and rank-and-file employees from exercising initiativeD. Putting the organization at risk if higher-level management is unaware of theiractionsE. Creating more layers of management

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Steven Oliver · Answer 1

Putting the organization at risk if higher-level management is unaware of their actions

Explanation:

Decentralization is a process of top management transferring decision-making powers, particularly in relation to planning and control, by means of delegated authority away from the top, to lower levels of management.

Once this is done, of the disadvantages is that: top management might not always be aware of issues when they occur and how and when they nmay have been resolved. This could put the organisation at risk because certain issues may have been better resolved at the top by virtue of the experience of senior management. In essence, Top management might begin to loose control.