Which statement describes a disadvantage of centralised management?

• A. Less responsibility is given to subordinates, resulting in demotivated staff
• B. Decisions reflect the needs of local markets
• C. Organisation reacts slowly to external factors
• D. Subordinates have too much autonomy

Answer: (A)

Centralised management concentrates decision-making at the top, so subordinates have little authority or responsibility in shaping outcomes. The most direct consequence of this is demotivation: when staff aren’t entrusted with decisions or empowered to influence work, their sense of ownership and purpose diminishes. This can lower motivation, reduce initiative, and impact performance and morale across the organization. While centralisation can also slow responses to external factors, the clear, people-focused disadvantage shown here is the drop in motivation that comes from lacking empowerment. (Decisions reflecting local needs align with decentralisation, and having too much autonomy is the opposite of centralised control.)