MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS STRUCTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is a disadvantage of centralisation?
A
Decisions made may not be in line with the overall business aims
B
Increased costs of training
C
Inconsistent decision making across the organisation
D
Low levels of motivation amongst junior managers
Explanation: 

Detailed explanation-1: -The result of such actions is a decline in performance because the employees lack the motivation to implement decisions taken by top-level managers without the input of lower-level employees.

Detailed explanation-2: -Disadvantages include the tendency to stifle innovation and creativity, making it hard for an organization to adjust to change. Centralized authority may also decrease job satisfaction and organizational commitment in low level employees.

Detailed explanation-3: -“Centralization” is a system in which a small group of individuals at the top of the organizational hierarchy have sole authority to make decisions. Top management makes recommendations for implementation to lower-level managers. As previously stated, centralization has both benefits and drawbacks.

Detailed explanation-4: -In centralized training, employees have less time to focus on their individual professional goals. According to Noe (2009), this model does not allow managers to explore the unique needs of each project, identifying teams’ skills, competencies, and areas for improvement.

Detailed explanation-5: -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.

There is 1 question to complete.