What is one drawback of an organization operating under a tall structure?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

An organization with a tall structure typically features multiple layers of management. This hierarchical setup can lead to poor communication because information must pass through several levels before reaching the intended recipient. Each level may add delays, distortions, or misunderstandings to the message, which can hinder effective decision-making and operational efficiency.

In contrast, increased flexibility in decision-making and wider spans of control generally characterize flatter organizational structures, where there are fewer levels of management. Similarly, a tall structure often means that lower-level employees have less authority, as decisions tend to be centralized at higher management levels. Therefore, the issue of communication breakdown is a significant drawback associated with tall organizational structures, impacting overall organizational effectiveness.

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