Question

which one of the following is a demerit of centralization ​

Answer 1

Answer:

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Disadvantages Of Centralization

The following are the main drawbacks or disadvantages of centralization:

1. Centralization Is Unsuitable For Large Organization

Centralization is impractical in large business organization having various branches in different locations. It is difficult to communicate managerial decisions to different operating levels in the management hierarchy. Top level managers cannot effectively supervise and control all the activities of the organization.

2. Manager Is Overburdened

In centralization, top managers are over burdened with authority and responsibility while managing each and every activity of the organization. He/she cannot devote sufficient time in other major issues. It tends to decrease working efficiency of the organization.

3. Possibility Of Power Misuse

Centralization of authority at the top level may result in under-utilization of power. Top level managers may exercise their powers on the basis of their personal judgement. This may lead to misuse of authority if the managers lack proper skills and ability.

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