What is a consequence of centralized decision making?

Centralized decision-making typically consolidates authority and responsibility among a limited number of individuals, usually in higher management. As a result, the decision-making process is directed by these leaders with less input from lower levels of staff. This concentration of power can lead to a significant loss of employee input, as frontline staff and middle management may feel disconnected from the decision-making processes that affect their work and the organization as a whole.

In such environments, employees may not have the opportunity to share their insights, ideas, or suggestions, which can ultimately stifle innovation and reduce overall engagement. While some aspects of centralized decision-making, such as speed and clarity in communication, may be enhanced, the trade-off often involves sacrificing valuable perspectives from a diverse team, limiting creativity and collaboration within the organization.