Business Management Deneme Sınavı Sorusu #1098476

In today's work environments, flat organization structures are much more preferable. What is the main reason for this?


They provide tax advantages

Many different voices in decision-making

They shorten the time to make a decision

Lots of managers can be employed

They are more prestigious


Yanıt Açıklaması:

The span of control in a company influences the height of its hierarchy. A flat organization structure has relatively fewer layers of management while a tall structure has multiple layers. Generally, the lower the height of the structure, the wider the span of control. It shows a typical consulting firm structure where partners/managers can supervise relatively large numbers of associates, i.e. wider span of control. This is because in these types of firms, both partners and associates are knowledgeable about the topics in which they specialize.

We can see that companies with tall structures tend to make decisions at a slower rate because the decisions need to pass through more layers of management in the hierarchy. Today’s business environment requires that organizations speed up their decision making and therefore have been flattening their structures. Also, businesses with fewer numbers of managers can reduce the human resources expenses. Larger spans of control and flattening of structures are consistent with managers’ efforts to speed up decision making, to increase flexibility and to reduce costs.

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