Which of the following is a limitation to a decentralized organization structure?

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In a decentralized organizational structure, decision-making authority is distributed among various levels and departments rather than being concentrated at the top. While this model encourages enhanced collaboration, improved adaptability, and higher accountability at local levels, it can also lead to slower decision-making processes. This occurs because decisions that may require approval or input from multiple parties need to go through various layers of the organization, which can introduce delays. Different teams or departments may have differing priorities or perspectives, further complicating and prolonging the decision-making process.

In contrast, in a centralized structure, decision-making is quicker because fewer individuals are involved. This allows for the potential for faster responses, but often at the expense of local insights and flexibility. Thus, the decentralized structure's strength in fostering collaboration and accountability can paradoxically lead to inefficiencies in decision-making speed.

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