Question : Case Study 61: Creative Solutions
Decentralization's advantage of enhanced accountability is often accompanied by:
Option 1: Limited resource allocation
Option 2: Reduced innovation
Option 3: Centralized decision-making
Option 4: Hierarchical control
Correct Answer: Reduced innovation
Solution : The correct answer is (b) Reduced innovation
While decentralization enhances accountability by spreading decision-making responsibilities, it can sometimes inadvertently stifle innovation. When decision-making authority is dispersed across various units, there might be a tendency to stick to conventional approaches rather than exploring innovative solutions. Centralized decision-making, on the other hand, can sometimes provide a more structured approach for fostering and implementing innovative ideas.
