In which type of organizational design do middle managers do the primary information processing and communication function, telling subordinates what to do and then reporting the outcome to senior management?

The correct answer is letter "C": Hierarchical.

Explanation:

Hierarchical organizations are bureaucratic entities where the decisions are taken by high-rank executives and the main instructions about how the business should be handled come from managers to employees with less command. Messages, as well, have a top-down flow. Hierarchical companies tend to be slow in their processes because the information must flow between different layers of the entity.