A disadvantage of a decentralized organization can be duplication of services and functions.Single choice
A
True
B
False

Question

A disadvantage of a decentralized organization can be duplication of services and functions.

BlackTom AI · Accepted Answer

Decentralized organizations distribute decision-making authority and operational responsibilities to lower-level units (divisions, regions, business units), which often leads to duplication of services and functions.

1. Relevant knowledge points and concepts
- Decentralization: authority moved away from a central point to autonomous subunits.
- Duplication of services: multiple units independently maintaining similar functions (HR, IT, marketing, finance).
- Trade-offs: decentralization improves responsiveness and local control but reduces centralized coordination and economies of scale.

2. Step-by-step reasoning
- When authority is decentralized, each unit requires the capability to make decisions and implement policies locally.
- To support local decision-making, units commonly establish their own support functions (e.g., HR specialists, accounting teams, IT support).
- Because these functions are created independently, similar roles and processes appear across units rather than being consolidated centrally.
- The independent creation and operation of these functions cause redundancy in staffing, systems, and processes.

3. Intermediate steps (conceptual, no numerical calculation)
- Step A: Central unit delegates authority to regional units.
- Step B: Regional units hire or create support functions to operate autonomously.
- Step C: Multiple regions maintain separate teams performing the same tasks → duplication.

4. Why the correct answer is correct
Duplication of services is a well-documented disadvantage of decentralization: it increases costs, wastes resources, and can produce inconsistent procedures or standards across the organization because similar functions are replicated rather than centralized and streamlined.

5. Why the other option is incorrect
Choosing "False" would deny that duplication can occur under decentralization. While not inevitable in every case, duplication is a common and recognized downside; therefore "False" is not accurate as a general statement.

6. Conclusion
Based on the concepts and reasoning above, the correct answer is True, which matches the provided answer.

A disadvantage of a decentralized organization can be duplication of services and functions.Single choice

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