MTEL Business Practice Exam

Category - Business Operations

Which of the following is likely to be one advantage of reducing the number of management levels in a company's organizational structure?
  1. Decreasing task differentiation and employee specialization.
  2. Increasing the flexibility of decision making.
  3. Decreasing the workload for middle-level managers.
  4. Increasing morale and motivation among employees.
Explanation
Correct Response: B. In an organization with multiple layers of management, most decisions are made at higher levels of management, and lower levels of management are involved in implementing the decisions. Reducing the number of layers opens lines of communication, shifts more responsibility to more employees, and encourages more individuals to engage in the decision-making process, thereby increasing flexibility. Reducing the number of layers of management will not necessarily affect task differentiation or specialization (A). The workload for middle-level managers will be more varied, but not necessarily reduced (C). Employee morale and motivation is affected by a variety of issues, and reducing the levels of management by itself is unlikely to boost moral or motivation (D).
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