What is a disadvantage of a tall organizational structure for ABC?

• A. It reduces the number of managers.
• B. It can lead to slow decision-making due to many layers of management.
• C. It eliminates need for SOPs.
• D. It speeds up information flow.

Answer: (B)

A tall structure repeats many layers of hierarchy, which creates longer pathways for decisions and information to travel. Because approvals and guidance often have to pass through multiple managers, actions take longer to get the green light, and feedback can be delayed as it moves up and down the chain. This reduced speed in decision-making is the main drawback of a tall organization, especially for a company like ABC that needs to respond quickly to changes.

So the best choice points to slow decision-making caused by the many management layers. The other options don’t fit: reducing the number of managers isn’t characteristic of a tall structure (it actually increases them); SOPs are still needed for consistency regardless of height; and information flow is typically slower, not faster, in tall hierarchies.