Page 360 - Business Principles and Management

Chapter 13 • Planning and Organizing

Another major type of reorganization occurring in businesses today is known
as flattening. A flattened organization is one with fewer levels of management
than traditional structures. To achieve a flattened organization, the remaining
managers and employees assume many of the responsibilities previously assigned
to other levels of management. A flattened organization should have improved
communication, because information has to flow through fewer levels. There
should also be more coordination and cooperation because there is less special-
ization within the organization. As competition increases and customers expect
businesses to improve quality and service, the organization of a business becomes
very important. A complex organizational structure that requires a great deal of
time for making decisions and for communicating information will not be as
competitive as one that is more flexible and responsive.

CHECKPOINT

How can business organization be made more effective?

13.4 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. If managers in large organizations have difficulty mastering the
knowledge and skills they need in all of their areas of responsibil-
ity, which type of organizational structure would be most helpful?
a. line
b. line-and-staff
c. matrix
d. team
2. For work teams to be successful in an organization, team members
must become competent in all of the following areas except
a. technical job skills
b. interpersonal skills
c. administrative skills
d. All of the skills are required.

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Why does the line organizational structure often create problems
in sharing information and communicating among employees and
managers from different parts of the organization?
4. Flattened organizations provide benefits in improved communi-
cations, coordination, and cooperation. Why does that occur?
What problems do you believe might result
from the flattened organization structure?

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