An advantage of a tall organizational structure for ABC is that it...

• A. Creates clear lines of authority and accountability, which is advantageous for traditional manufacturing operations
• B. Reduces production costs
• C. Increases speed of decision making
• D. Encourages cross-functional teamwork

Answer: (A)

Tall structures have many layers of management, which creates clear lines of authority and accountability because each employee has a specific supervisor and reporting path. In traditional manufacturing, this clarity helps ensure that procedures are followed, quality standards are met, and safety rules are enforced, with responsibility easily traceable up the chain. While this control is an advantage, the other statements don’t fit as well: production costs are usually higher, not lower, due to more managers and longer communication paths; speed of decision making tends to slow because approvals have to move through multiple levels; and cross-functional teamwork is typically limited in tall, siloed setups, unlike flatter or matrix structures that promote collaboration across functions.