Firms with a flat structure and a low degree of specialization tend to foster innovation better than firms with a tall structure and high degree of specialization.

Question

Quizplus · Accepted Answer

Organic organizations have a low degree of specialization and formalization, a flat organizational structure, and decentralized decision making. Organic organizations typically exhibit a higher rate of entrepreneurial behaviors and innovation. Organic structures allow firms to foster R&D and/or marketing, for example, as a core competency.

Firms with a Flat Structure and a Low Degree of Specialization