A change in structure has implications

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This historical data analysis was complemented with exploratory interviews with executives what CEOs say and analysis of data on executive time use what CEOs do . Results suggest that flattening transferred some decision rights from lower level division managers to functional managers at the top. Flattening is also associated with increased CEO involvement with direct reports—the second level of top management—suggesting a more hands on CEO at the pinnacle of the hierarchy.


In sum flattening at the top is a complex phenomenon that in the end looks more like centralization. Yet it is crucial to consider different types of decisions and activities and how they vary by level in the hierarchy. Key concepts include Heavy Construction Contractors Email List Firms may flatten structure to delegate decisions but doing so can lead to unintended consequences for other aspects of internal governance. For instance a manager may flatten structure to push decisions down and then hire and develop division managers suited to being the boss.





If flattening actually pushes decisions up division managers are now out of sync with the organization They don t have autonomy to make decisions and there is a mismatch between managerial talent and decision rights.  not only for who makes decisions but also for how decisions are made. Flatter structures involve different roles for the CEO and the senior team. Author Abstract For decades management consultants and the popular business press have urged large firms to flatten their hierarchies.