ICANBusiness, Management and FinanceOrganisational Structure and Culture2020

Apex Telecoms Nigeria Plc is considering decentralising its decision-making authority to regional managers across its six geopolitical zone offices. Which of the following is the MOST significant organisational risk associated with decentralisation?

AReduced motivation among regional managers due to limited autonomy
BSlower response to local market conditions
CPotential inconsistency in the application of corporate policies and standardsCORRECT
DIncreased burden on top management to make all operational decisions
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
The most significant risk of decentralisation is that regional managers may interpret and apply corporate policies differently, leading to inconsistency in standards, quality, and brand representation across locations. Options A and B are actually disadvantages of centralisation, not decentralisation. Option D describes a burden that decentralisation is intended to relieve, making C the correct risk associated with decentralising authority.
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