Question

. The disadvantages of a centralized organizational structure include A. lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative. B. a loss of top 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 capture of strategic fits.

Answer 1

Answer:

A. lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative.

Explanation:

An organization with a centralized structure is one whose decision-making process is restricted to professionals at the top of the hierarchy, that is, only the leader of the organization is the one who will make the decisions inherent to the business.

This type of structure usually exists in organizations whose businesses are less flexible and need greater control and coordination of organizational processes.

Therefore, there are some disadvantages of centralization, one of which is described in the alternative A: lengthening response times and discouraging low-level managers and ordinary employees from exercising the initiative.

Because as the leader may be far from the problem to be decided, it will take more time to make the necessary judgments for decision making. Employees are also less encouraged to contribute with innovative solutions, since the decision-making process is only in the hands of the leader of the company.