Final Answer:
A disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence is the potential for suboptimal decision-making and conflicting objectives among different units.
Step-by-step explanation:
Decentralization involves delegating decision-making authority to lower levels of an organization. While this can lead to increased responsiveness and efficiency, a significant drawback arises when there is a lack of alignment in goals across various decentralized units. Goal congruence refers to the harmony between the goals of individual units and the overall objectives of the organization.
One issue with decentralization is that subunits may prioritize their own objectives over the broader organizational goals. This divergence can result in conflicting actions and decisions that are not aligned with the organization's strategic direction. For example, a department may focus on maximizing its own performance metrics without considering the impact on the organization as a whole.
Moreover, the absence of proper communication and coordination mechanisms can exacerbate the challenge of goal congruence. Decentralized units may not have a clear understanding of the organization's overarching goals or may lack incentives to align their activities with those goals. This can lead to suboptimal decision-making, duplication of efforts, and a failure to harness synergies that centralized control might better manage.