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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


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

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.

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