Which is a disadvantage of centralised management under functional grouping?

• A. Slow communication due to centralised management
• B. It eliminates duplication of resources
• C. It speeds up adaptation
• D. It fosters uniform branding

Answer: (A)

Centralised management in a functional structure concentrates decision-making at the top, with authority passing through a hierarchy of functions. Because decisions often need top-level approval and coordination across departments, communication tends to be slow. This slows response times and makes the organization less agile when changes are needed, which is the main disadvantage of this setup. The other statements describe potential benefits—like reducing resource duplication or maintaining uniform branding—that are not disadvantages, and the idea that adaptation speeds up is not typically true under centralised control.