Future Business Leaders of America (FBLA) Business Management Practice Test

In a company with a flat structure, how does management's control over employees compare to a tall structure?

1. More control

2. Less control

3. Equal control

4. Dependent on the employees

The correct answer is: Less control

In a flat organizational structure, management typically has less control over employees compared to a tall structure due to the reduced number of hierarchical levels. In a flat structure, there are fewer layers of management, which means that each manager oversees a larger number of employees. This approach fosters a more decentralized decision-making process, encouraging employee autonomy and empowerment. Employees in a flat structure often have more direct communication with management and are granted greater responsibility in their roles. This environment promotes creativity and innovation, as employees can make decisions without going through several levels of approval. Consequently, while management's influence remains significant, it is diluted due to the broader span of control. In contrast, a tall organizational structure has multiple layers of management, which typically leads to increased control and oversight. In this setup, each manager oversees fewer employees, allowing for tighter supervision and more structured processes. Therefore, the control exerted by management in a tall structure is more direct, as there are more formal channels and protocols in place for guiding employee behavior and performance. This fundamental difference in management style and employee autonomy between flat and tall structures plays a key role in the degree of control experienced in each type of organizational design.