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    Question

    Which of the following is聽not聽an advantage of a

    hierarchical structure in an organization?
    A Clear chain of command Correct Answer Incorrect Answer
    B Quick response to change Correct Answer Incorrect Answer
    C Discipline and stability Correct Answer Incorrect Answer
    D Small span of control Correct Answer Incorrect Answer
    E Opportunities for promotion motivate employees to perform well Correct Answer Incorrect Answer

    Solution

    Hierarchical structures are not designed to deal with change quickly or effectively.聽 Hierarchical Structure:聽 A hierarchical organization follows the layout of a pyramid. Every employee in the organization, except one, usually the CEO, is subordinate to someone else within the organization. The layout consists of multiple entities that descend into the base of staff level employees, who sit at the bottom of the pyramid. Advantages of a Hierarchical Structure: 路聽聽聽聽聽聽聽聽 Employees recognize defined levels of leadership within the organization; authority and levels of responsibility are obvious. 路聽聽聽聽聽聽聽聽 Opportunities for promotion motivate employees to perform well. 路聽聽聽聽聽聽聽聽 Hierarchical structures promote developing employees as specialists. Employees may narrow their field of focus and become experts in specific functions. 路聽聽聽聽聽聽聽聽 Employees become loyal to their departments and look out for the best interest of their area. Disadvantages of a Hierarchical Structure: 路聽聽聽聽聽聽聽聽 Communication across different departments tends to be less effective than in flat organizations. 路聽聽聽聽聽聽聽聽 Rivalry between departments may inflame as each department makes decisions that benefit its own interests rather than the organizations as a whole. 路聽聽聽聽聽聽聽聽 Increased bureaucracy often hinders an organization's speed to change. Increased time may be required to respond to clients. 路聽聽聽聽聽聽聽聽 Salaries for multiple layers of management increase an organization's costs.

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