Isabelle, the CEO of Roll-En Pens, finds that vertical hierarchy exists in the organization. She plans to reduce the stress on this hierarchical structure and give more decision-making ability to the subordinates. In the context of tall and flat organizations, Isabelle is trying to create a(n) _____ organization.
A) bureaucratic
B) decentralized
C) informal
D) matrix
E) adaptive

Question

Quizplus · Accepted Answer

By reducing the stress on the hierarchical structure and giving more decision-making ability to subordinates, Isabelle is trying to create a decentralized organization. In a decentralized organization, decision-making is pushed down to lower levels of the organization, making it flatter in structure. This contrasts with a bureaucratic organization, which tends to be centralized and rigid. Matrix and adaptive organizations are also flatter in structure, but they have specific characteristics that differentiate them from a decentralized organization. Informal organizations, on the other hand, refer to social networks and relationships that exist within an organization, and they are not related to the hierarchical or structural aspects of the organization. Therefore, option B is the best choice.

Isabelle, the CEO of Roll-En Pens, Finds That Vertical Hierarchy