1. Slower Decision-Making: Due to the multiple levels of approval required, decision-making can be slower compared to more flexible organizational structures. 2. Less Innovation: The rigid structure may stifle creativity and innovation as employees may feel less empowered to share new ideas. 3. Communication Barriers: Information can get distorted as it moves down or up the hierarchy, leading to misunderstandings. 4. High Costs: Maintaining a hierarchical structure can be costly due to the need for many managerial positions.