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

• A. Higher employee empowerment
• B. Better cross-functional collaboration
• C. Lower administrative costs
• D. Slower decision-making due to multiple layers of management

Answer: (D)

Having many levels in the hierarchy creates a long chain of command, so decisions must pass through several layers for approvals. That means messages take longer to travel up and down, information can be delayed or distorted, and managers at each level may introduce additional checks, all of which slow down decision-making. In dynamic environments, this reduced speed can hinder responsiveness and agility, making the organization less able to act quickly. In tall structures, empowerment and cross-functional collaboration also tend to suffer because authority is concentrated higher up and silos can form, and administrative costs rise with the extra management layers. So, the core drawback is the slower decision-making driven by multiple levels of management.