The primary disadvantage of decentralized operations is that decisions made by one manager may affect other managers in such a way that the profitability of the entire company may suffer.

Decentralized Operations

A management structure where decision-making and operations are distributed among various autonomous units or departments within an organization.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit relative to its revenue or investments over a specific period.

Manager

An individual responsible for controlling or administering an organization or group of staff.