Centralized organizations can suffer from the negative effects of several layers of bureaucracy. These businesses often have multiple management layers stretching from the owner down to front line operations. Business owners responsible for making every decision in the company may require more time to accomplish these tasks, which can result in sluggish business operations.
Decentralized organizations can struggle with multiple individuals having different opinions on a particular business decision. As such, these businesses can face difficulties trying to get everyone on the same page when making decisions