Which of the following is a disadvantage of 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!

In organizations with a tall structure, there are many levels of hierarchy. This often leads to higher operational costs primarily due to the need for more management layers and support personnel. Each additional layer can contribute to increased salaries, benefits, and administrative expenses. Moreover, the communication through multiple levels can slow down processes, requiring more resources to manage reporting and approvals.

In contrast, faster decision-making, better employee feedback, and greater autonomy for managers are typically associated with flatter organizational structures. A tall structure may actually hinder these aspects, as the layers can create bottlenecks and limit the executive power of lower-level managers.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy