difficulties in decentralisation.

Another big disadvantage of decentralization is the cost associated with the setting, managing, and executing the whole decentralized network. As employees are more responsible for their actions, any mistake can also cost a lot to the organization. Also, autonomy is not cheap.

Limitations of decentralization

1. It creats problem in coordination between different units of the organisation.

2. May result in higher administrative expenses as qualified managers a needed for different divisions.

3. Due to different politics and procedures of each unit in a decentralization organisation inconsistencies May arise in organizational activities.

The main disadvantage of a decentralized organization is that you lose control over the day-to-day activities of your company. Maybe “lose” is too strong a word, but you are ceding authority to your managers, which means that you trust their instincts, skills, and talents. However, that can backfire, if your managers aren’t up to the task, which can cause conflict between managers and staff, and between you and your managers.

Another disadvantage is that your managers may have a different agenda from yours, which can create a schism between the goals you want to advance and the goals they want to advance. For example, a mid-level manager may be more interested in growing his department than in meeting performance standards.