The disadvantages of a centralized organizational structure include putting too much decision making authority in the hands of lower-level company personnel. making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made. impeding cross-unit coordination and cross-business efforts to capture strategic fits. weak ability on the part of top-executives to micromanage the business. lengthening response times by those closest to the situation (because it of the time it takes for the review/approval process to run up all the layers of the management bureaucracy, allow time for higher-level managers to gather and process all the relevant information and then reach a decision on a course of action) and discouraging lower-level managers and rank-and-file employees from exercising initiative or taking on any responsibility (because they are expected to wait to be told what to do).