Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What are the advantages of a tall organization?

1. Wider control span

2. Increased employee isolation

3. Narrow control spans with small groups

4. Less participation in decision-making

The correct answer is: Narrow control spans with small groups

A tall organization is characterized by a hierarchical structure with many levels of management. This structure typically results in narrower spans of control, meaning each manager oversees a smaller number of employees. The advantage of narrow control spans is that it allows for more concentrated management and closer supervision of employees, which can enhance communication and provide more targeted guidance. Managers are likely to have a better understanding of their team members' work and needs, enabling them to provide more specific feedback and support. Additionally, with smaller groups, employees may feel more valued and connected, as individual contributions can be more readily recognized and acknowledged. This form of organization can lead to a clearer structure for reporting and accountability, facilitating an environment where performance can be more easily monitored. In contrast, a wider span of control might dilute a manager’s effectiveness, as they would have too many direct reports to manage effectively. Thus, the more focused approach of a tall organization ensures that employees receive adequate attention and support from their managers.