The Disadvantages of a Centralized Organizational Structure Include

question 60

Multiple Choice

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-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:

Theory of Mind

The cognitive ability to understand that others have beliefs, desires, intentions, and perspectives that are different from one's own.

Older Siblings

The child or children in a family who were born before other siblings, often taking on leadership roles and influencing the younger siblings' behavior and development.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, important in decision making, cognitive control, social behavior, and emotional regulation.

Limbic System

A complex system in the brain involved in emotions, memories, and arousal (or stimulation).