Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is a consequence of slow decision-making in tall organizations?

1. Improved flexibility

2. Increased initiative

3. Work passes through too many hands

4. More empowered employees

The correct answer is: Work passes through too many hands

In tall organizations, where there is a hierarchical structure with many layers of management, slow decision-making is often a significant consequence. The reason for this is that decisions typically need to pass through multiple levels of hierarchy before being finalized. Each layer of management may need to review, approve, or provide input on decisions, which can lead to delays. This bureaucratic process can hinder the organization's ability to respond quickly to changes in the marketplace or to capitalize on new opportunities. As information and decisions need to be filtered through several individuals or departments, time is lost, which can ultimately affect productivity and responsiveness. In contrast, other consequences like improved flexibility, increased initiative, or more empowered employees may not generally result from this structure; these are more often associated with flatter organizations that encourage quicker and more autonomous decision-making.