BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Decisions may not be in line with the overall business aims
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Increased cost of training
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Inconsistent decision making across the organisation
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The business may not respond quickly to changes in local conditions
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Low levels of motivation amongst junior managers
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Detailed explanation-1: -Centralized control of a business can have several downsides, including stifled creativity, limited communication, inflexible decision-making, and the danger of losing a key decision-maker.
Detailed explanation-2: -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.
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.