the CEO of a mid-sized software company is determined to keep the hierarchy at a
ID: 461938 • Letter: T
Question
the CEO of a mid-sized software company is determined to keep the hierarchy at a minimum number of levels. will this affect the organization's ability to control activities? what do you suggest (two to four specific actions for results)? the CEO of a mid-sized software company is determined to keep the hierarchy at a minimum number of levels. will this affect the organization's ability to control activities? what do you suggest (two to four specific actions for results)? the CEO of a mid-sized software company is determined to keep the hierarchy at a minimum number of levels. will this affect the organization's ability to control activities? what do you suggest (two to four specific actions for results)?Explanation / Answer
An important element of a company’s structure is the number of levels it has in its hierarchy. It affects the organization’s ability to control the activity. By keeping the hierarchy at minimum number of levels it becomes the flat structures which consist of only a few layers of hierarchy. In this type of structure a larger number of employees reporting to each manager. For a mid-sized company it is a good strategy as it involves low management overhead, better operational cost and profit margin. So the company can better utilize its resources. But in this type of structure, managers are overloaded so unable to provide close supervision which leads to greater levels of freedom of action for each employee but some time role ambiguity. It results -
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