Which risk does decentralization raise?

1. Decentralization is described as beneficial but also risky. 2. If lower-level personnel lack the necessary skills and training, they may make costly mistakes. 3. It may also increase the likelihood of inefficient lines of communication, competing objectives, and duplication of effort. 4. Slower decisions belong to centralization and to narrow spans of control. 5. Faster development of lower-level managers is a benefit of decentralization, so stalled development reverses it. 6. Weak response to customers is a centralization drawback, so it cannot also be the decentralization risk. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.5 Degree of Centralization_