Managerial Economics 2nd Edition by William Boyes

Exercise 13

One of the best examples of the impact structure has on operations is the transformation that began in the 1970s and is still going on today: flattening. In the early part of this century, companies had many levels between the worker in the shop or office and the president. Decisions had to pass through many levels of approval before anything got done. Now, decision makers may be found at the level of the worker in the shop. Suppose that the company is "flat" and decisions are made at the level of the worker but there is no communication channel from worker to worker. What problem might arise? How could it be resolved?