A Primary Disadvantage of a Centralized Organizational Structure Is That

question 41

Multiple Choice

A primary disadvantage of a centralized organizational structure is that it results in

• A)lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative.
• B)losing top-level 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 the capture of strategic fits.

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Definitions:

Competitive Advantage

The attribute that allows an organization to outperform its competitors, leading to greater sales or margins and/or retaining more customers.

Keeping Customers

involves strategies and practices to retain customers, enhancing customer loyalty and preventing turnover.

Innovations

The process of translating an idea or invention into goods or services that create value or for which customers will pay.

Service and Products

The combination of tangible goods and intangible services that a company offers to its customers.