ECONOMICS

Detailed explanation-1: -The statement is incorrect. Under decentralization, lower-level employees generally develop more rapidly because they are empowered to participate.

Detailed explanation-2: -Loss of Control: Too much of decentralization may result in loss of control from the hands of top management. Different units of the organization may start working as autonomous units working in their own interest in contrast of the overall interest of the organization.

Detailed explanation-3: -The disadvantages of centralization The employees are not able to participate in the decision-making process and are bound to implement decisions made at a higher level. The executives won’t understand if employees have difficulty implementing decisions. They are decision-makers, not implementers.