Lotus Inc. is attempting to flatten its organizational hierarchy. It is encouraging the use of cross-hierarchical teams, participative decision-making practices, and the use of 360-degree performance appraisals. Based on this information we can say that Lotus Inc. is attempting to create a ________ organization.
A) highly centralized
B) virtual
C) team
D) highly formalized
E) highly departmentalized

Question

Quizplus · Accepted Answer

Lotus Inc. is encouraging cross-hierarchical teams and participative decision-making practices, which suggests that the organization is moving towards a team-based structure. The use of 360-degree performance appraisals further supports this idea, as it indicates a focus on employee development and collaboration rather than a traditional hierarchical structure. Highly centralized, highly formalized, and highly departmentalized structures are less likely to encourage team-based work and collaboration. A virtual organization may use technology to facilitate remote teams but may not necessarily have a flatter hierarchy or participative decision-making practices. Therefore, C - team is the best choice.

Lotus Inc Is Attempting to Flatten Its Organizational Hierarchy