Question

Which of the following is a disadvantage of a decentralized organizational system?

A.Inability to handle multiple product lines
B.Ineffective decision making
C.Longer response time
D.Lack of flexibility
E.Lack of managerial attention

Answer 1

A disadvantage of a decentralized organizational system is the lack of flexibility and managerial attention. So, the correct answer is option D.

Step-by-step explanation:

A disadvantage of a decentralized organizational system is the lack of flexibility. In a decentralized system, decision-making authority is distributed among different departments or levels of management. This can lead to slower response times and difficulties in implementing changes or adapting to new circumstances.

For example, if a company with multiple product lines chooses a decentralized structure, it may face challenges in coordinating and aligning decisions across different product divisions. Additionally, a decentralized system can result in a lack of managerial attention as managers are responsible for a narrower scope of operations.

So, the correct answer is option D.