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Question

In ABC Ltd. all the decisions are taken by top level management only. Which policy is followed by organisation? Explain the drawback of this organisation.

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Solution

Centralization-
A concentration of control of an activity or organization under a single authority or top level management.
The following are the main drawbacks or disadvantages of centralization:
1. Centralization Is Unsuitable For Large Organization
2. Manager Is Overburdened
3. Possibility Of Power Misuse
4. Low Morale Motivation
5. Lack Of Environmental Adaptation

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