Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the implication of a tall organization's management structure?

1. A wide span of control

2. A narrow span of control

3. An equal distribution of authority

4. Reduced employee involvement

The correct answer is: A narrow span of control

A tall organization's management structure is characterized by a narrow span of control. In such a setup, there are multiple layers of management, resulting in each manager overseeing a small number of subordinates. This structure typically leads to a more hierarchical organization where decisions and directives flow through several levels of management. The narrow span of control allows managers to maintain closer supervision of their teams, fostering a detailed level of interaction and support. This can be beneficial for employee development, as managers can dedicate more time to coaching and monitoring individual performance. However, it can also result in slower decision-making processes due to the number of layers involved. In contrast, other responses such as a wide span of control, equal distribution of authority, or reduced employee involvement do not accurately reflect the implications of a tall organizational structure. A wide span of control would suggest fewer management layers and broader oversight by each manager, which is contrary to the tall structure's definition. An equal distribution of authority implies a flatter, less hierarchical configuration, which does not align with the idea of a tall organization. Lastly, the notion of reduced employee involvement can vary; while the structure may lead to fewer direct interactions due to multiple layers, it doesn't necessarily mean that employee involvement is diminished across the board. It fundamentally points back