Which of the following is considered a disadvantage of decentralizing authority?

Decentralizing authority involves distributing decision-making power closer to the point of action or operation within an organization rather than keeping it centralized at the top levels of management. While decentralization has several benefits, such as faster decision-making, improved employee engagement, and reduced hierarchy, one significant disadvantage can be viewed as increased managerial control, especially in certain contexts.

When authority is decentralized, it can lead to an oversight challenge. Managers lower in the hierarchy may struggle with accountability standards, making it necessary for higher management to impose stricter controls to ensure decisions align with the overall strategy of the organization. This can result in more layers of oversight rather than empowering employees fully.

In decentralized organizations, while employees may have more autonomy, alignment with the organization's strategic goals can be harder to maintain without proper controls. Therefore, an increase in managerial control may emerge as a necessary response to ensure strategic consistency and coherence across various branches or teams. Instead of enjoying the full benefits of empowerment that decentralization promises, the need for oversight might paradoxically lead to a more controlled operational environment.

In contrast, faster decision-making, improved employee engagement, and reduced hierarchy highlight the strengths of decentralization, which often outweigh the potential pitfalls unless not managed effectively.