Final answer:
Centralized organizational structures can be disadvantageous due to their rigidity, slow response times, and discouragement of lower-level initiative, all of which hinder flexibility and efficiency in the modern, fast-paced business environment.
Step-by-step explanation:
The disadvantages of a centralized organizational structure encompass various drawbacks that affect the efficiency, decision-making processes, and adaptability of the organization. From the options provided:
A) Lengthens response times because increasing the size of the corporate bureaucracy and discouraging lower-level managers and rank-and-file employees from exercising initiative.
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 capture of strategic fits.
These options capture some of the drawbacks associated with a centralized structure:
A) Lengthens response times due to increased bureaucracy and reduced autonomy at lower levels, leading to slower decision-making and responsiveness to changes in the external environment.
D) Challenges in fixing accountability and taking corrective actions when issues arise due to the concentration of decision-making power at the top, potentially resulting in delays in addressing problems or risks.
E) Impeding cross-unit coordination and the ability to capture strategic fits due to the hierarchical nature of a centralized structure, which might hinder effective communication and collaboration between different units or departments.
While B) and C) also describe potential issues within an organizational structure, they do not align as closely with the disadvantages commonly associated with a centralized structure as options A, D, and E do.