Which of the following describes a motivation-related diseconomy of scale?

A motivation-related diseconomy of scale occurs when the growth of a business leads to challenges that negatively impact employee motivation or satisfaction. In this context, option B accurately reflects that scenario through the mention of loss of morale due to large employee numbers. As organizations expand, employees may feel disconnected or undervalued in a larger workforce, leading to decreased motivation. High employee numbers can create feelings of anonymity or insignificance, which can adversely affect overall morale and productivity.

On the other hand, options that refer to increased communication efficiency, a rise in production quality, and better decision-making capabilities are generally associated with the benefits of economies of scale rather than the downsides. As firms grow, they often find ways to streamline processes and improve the quality of their products or services while enhancing decision-making through specialized roles and better communication systems. Therefore, these responses signify advantages rather than the motivation-related challenges posed by expansion, making them less applicable in the context of the question regarding diseconomies of scale.