Which statement best describes a hierarchical structure?

• A. A flat structure with many equal levels
• B. A structure where decision rights are decentralized
• C. A structure that is wholly informal
• D. Big at the bottom, narrow at the top (Correct)

Answer: (D)

Hierarchy means authority is arranged in levels with a clear chain of command from top to bottom. A tall, formal structure is often depicted as a pyramid: many people at the bottom, progressively fewer at higher levels, ending with a small number of senior managers. The description “Big at the bottom, narrow at the top” captures this idea because it shows a large base of employees reporting upward to a small apex of decision-makers, which is the essence of a hierarchical organization.

In contrast, a flat structure would have few levels and a broad base, indicating less layering of authority; decentralization spreads decision rights, reducing centralized control; and an informal structure lacks formal reporting lines, so it isn’t truly hierarchical.