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Practice Reading: Multiple Choice, Single Answer ID: #4376 Management
Instructions ›
Read the text and answer the multiple-choice question by selecting the correct response. Only one response is correct.
Traditional businesses with many layers of management hierarchy often suffer from slow-moving and bureaucratic chains of internal communication. 'Flat' organizational structures developed in response to the belief that fewer managerial levels would enable more informal and efficient decision-making and information dissemination. While flat organizations do tend to accommodate market changes more quickly, they have other drawbacks. Managers in such structures tend to have many more people reporting directly to them, which may leave them with little time to carry out other important responsibilities. Also, hierarchical companies have, by their very nature, more explicit opportunities for promotion. Managers in flat businesses may be forced to look elsewhere to develop their careers.

The author considers flat management structures to be advantageous because:

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Result:

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Option 4: "they allow a business to be more responsive"

Explanation: The text explicitly states that flat organizations tend to accommodate market changes more quickly, which is a clear advantage. This responsiveness is a key benefit of flat structures, as it allows businesses to adapt to changes in the market more efficiently, supporting the main idea of the text.

Option 1: "they have fewer levels of hierarchy"

Explanation: While the text mentions that flat organizational structures have fewer managerial levels, it does not state that this is an advantage. In fact, the text highlights drawbacks associated with flat structures, such as managers having more direct reports and less time for other responsibilities.

Option 2: "they imply that each manager oversees the work of more employees"

Explanation: This option describes a characteristic of flat management structures but does not present it as an advantage. The text indicates that having more employees reporting to each manager can lead to challenges, such as managers being overwhelmed and unable to fulfill other important duties.

Option 3: "they promote greater informality"

Explanation: Although the text mentions that flat structures enable more informal decision-making, it does not suggest that this informality is an advantage. The focus is on the efficiency of decision-making rather than the informality itself, which is not framed positively in the context of the overall discussion.

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