Practice Quiz

Case Interview Prep

Category - Management

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Mary is a new hire at Company XYZ. There are only two managers between her and the CEO when the reporting relationships are drawn on an organizational chart. What type of reporting relationship structure does this represent?
  1. Tall structure
  2. Flat structure
  3. Decentralization
  4. Span of management
Explanation
Answer: B - In a flat organizational structure, there are fewer levels between employees and top management.

Key Takeaway: Flat organizational structures reduce the number of intermediate managers and simplify decision making. Often, in a flat organizational structure, decision making is delegated downwards and decisions are made at much lower levels than in a tall organizational structure. This allows for quicker decisions since there are less levels of communication to slow down the decision making process.
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