1. If one requires any information, he will have to approach the central office. If the central office is far, then there is a delay in getting the information.
2. The section-heads suffer from an inferiority complex for every information; the central office (supreme) is to be approached.
3. The staff working in the central office may feel proud, at the same time such feelings may wound the staff working in different sections.
4. Since the central office is overloaded, it is possible that mistakes or errors will creep in.
5. Too much concentration of authority or control over others may spoil the interest and initiative of the sub-ordinates.
6. Delays in accomplishing the work owing to the transmitting of the records from and to centralized units.