Which of the following organizational arrangements does NOT support a company taking a low-cost position?
A) Incentive systems that empower employees to suggest and pursue initiatives that are consistent with productivity improvements.
B) A frugal company culture that emphasizes the need to control costs.
C) Measurement and control systems that focus on productivity and cost containment.
D) A multi-level structure with several tiers in the management hierarchy.
E) Clear lines of accountability and control.

Question

Quizplus · Accepted Answer

A multi-level structure with several tiers in the management hierarchy can increase bureaucracy and slow decision-making, which can ultimately lead to higher costs. Companies pursuing a low-cost position often aim to streamline their operations and eliminate unnecessary layers of management. Therefore, this organizational arrangement does not support a low-cost position.

Which of the Following Organizational Arrangements Does NOT Support a Company