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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


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

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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