Final answer:
Overcentralization in organizations can lead to delayed response to regional changes, hinder reporting of problems by low-level employees, and slow down decision implementation.
Step-by-step explanation:
Overcentralization can cause serious problems for an organization due to several reasons:
- It can take longer for the organization to respond to changes on a regional scale. When decision-making authority is concentrated at the top, it becomes more difficult for the organization to adapt quickly to specific regional needs and preferences.
- It can prevent low-level employees from reporting problems. In an overcentralized system, lower-level employees may feel discouraged from speaking up about issues or suggesting improvements, leading to the potential for unresolved problems and missed opportunities for growth.
- It can take longer for the organization to implement decisions. With overcentralization, decision-making processes can become slow and cumbersome. The hierarchy of approvals and the need for top-level involvement in every decision can delay the implementation of important decisions.
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