Question : Case Study 33: Creative Solutions
Creative Solutions, a design agency, is considering the concept of decentralization.
Question:
A limitation of decentralization is:
Option 1: Enhanced innovation
Option 2: Reduced decision-making speed
Option 3: Streamlined communication
Option 4: Improved employee empowerment
Correct Answer: Reduced decision-making speed
Solution : The correct answer is (b) Reduced decision-making speed
A limitation of decentralization is reduced decision-making speed. Decentralization involves dispersing decision-making authority across various levels of an organization. While this can promote employee empowerment, creativity, and innovation, it can also slow down decision-making processes as multiple decision-makers may need to be consulted or involved in the decision-making process. This can sometimes result in delays, especially in situations where quick and decisive decisions are necessary.
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