14. One of the disadvantages of a decentralized structure featuring employee empowerment is How to exercise enough control over the actions and decisions of empowered employees so that the business is not put at risk in the event that empowered employees happen to make some unwise decisions < Previous Question 15 Next > One of the disadvantages of a decentralized structure featuring employee empowerment is Copyright by Glo-Bus Software, Inc. Copying, distributing, or 3rd party website posting isexpressly prohibited and constitutes copyright violation. a loss of "full control" on the part of top management (because higher-level managers may be unaware of actions taken by empowered employees under their supervision). the difficulties of delegating authority in ways that allow organization units and individuals to do things in the best way they see fit. how to avoid de-motivating employees (because empowered employees feel threatened by having to take responsibility for their actions and decisions). the time and costs associated with empowering lower-level managers and employees. how to keep empowered employees from making lots of stupid decisions. TABLE 10.1 Advantages and Disadvantages of Centralized vs. Decentralized Decision Making Centralized Organizational Structures Basic Tenets Decisions on most matters of importance should be pushed to managers up the line who have the experience, expertise, and judgment to decide what is the wisest or best course of action. Frontline employees have neither the temperament, managerial know-how, or judgment to direct and properly control the work they are performing and, thus, cannot be counted upon to make wise decisions about how to perform it. Hence, giving them the authority to decide "what to do" in performing their assigned tasks is risky. Chief Advantages Makes higher-level executives accountable for outcomes since they decide (or approve) what actions to take. Facilitates strong top management leadership in crisis situations. Reduces potential for conflicting actions and decisions on the part of lower-level personnel. Primary Disadvantages Lengthens response times by those closest to the situation because they must go up the chain of command and allow higher-level managers to decide (or at least approve) what actions to take. Does not encourage lower-level managers and rank- and-file employees to exercise any initiative or take on any responsibility. They are expected to wait to be told what to do. Decentralized Organizational Structures Basic Tenets Decision-making authority should be put in the hands of the people closest to, and most familiar with, the situation. All people who are given decision-making authority should be trained to exercise good judgment and held accountable for their actions. A company that draws on the combined intellectual capital of all its employees can outperform a command-and-control company. Chief Advantages Encourages company employees to exercise initiative and act responsibly. Promotes greater motivation and involvement in the business on the part of more company personnel. Spurs new ideas and creative thinking. Allows fast response times. Entails fewer layers of management. Primary Disadvantages Top management lacks "full control"-higher-level managers may be unaware of actions taken by empowered personnel under their supervision. Puts the organization at risk if empowered employees at lower levels in the organization happen to make "bad" decisions. Can impair cross-unit collaboration since empowered employees in different organizational units can act independently and decide what to do and when to do it. Efforts to decentralize decision making and give company personnel some leeway in conducting operations must be tempered with the need to maintain adequate control and cross-unit coordination. Decentralization doesn't mean delegating authority in ways that allow organization units and individuals to do their own thing.