Telescopic Inc., a web development firm, is headed by Rob Dennis, the CEO. Each functional department of the company-marketing, finance, and HR-has a president who reports to the CEO directly. Each department has various managers who manage teams. The managers report to the presidents, and the team leads report to the managers. Finally, the employees at the lowest level report to their team leads. It is rare for a lower-level employee to interact with the CEO of the company. In this scenario, Telescopic Inc. can be said to have a(n)
A) organic organizational structure.
B) decentralized organizational structure.
C) tall hierarchical structure.
D) flat hierarchical structure.

Question

Quizplus · Accepted Answer

In this scenario, Telescopic Inc. can be said to have a tall hierarchical structure. Hierarchy determines the formal, position-based reporting lines and thus stipulates who reports to whom. If many levels of hierarchy exist between the front-line employee and the CEO in a firm, it has a tall structure.