One Potential Pitfall of Decentralizing a Firm Is

Multiple Choice

One potential pitfall of decentralizing a firm is:

A) the inflexibility that decentralizing a firm causes.
B) the few opportunities it leaves for employees to move up the company hierarchy.
C) more layers of management will need to be created, thereby slowing flow of communication between authorities and local managers.
D) a decrease in clear communication between the firm authority and local employees may lead to insecurity and a lack of focus within the firm.
E) dissatisfaction among employees who want more responsibility and decision-making authority.