One disadvantage of using a shared-service center is:

• A. Unanticipated power shifts
• B. Improved staff morale
• C. More personalized service
• D. Greater decision autonomy

Answer: (A)

Centralizing HR functions through a shared-service center tends to shift influence and authority from local units to the centralized team. This can lead to unanticipated power shifts, as the central group gains more control over policies, approvals, and service levels that used to be managed locally. The result can be tension between sites and the center, resistance to change, and potential misalignment with specific local needs.

The other options describe outcomes that are more aligned with benefits of centralization or mismatches with its typical effects: improved staff morale is usually a positive result of well-run changes, more personalized service is harder to achieve with standardized centralized processes, and greater decision autonomy is generally reduced under centralized models rather than increased.