The degree of vertical differentiation affects organizational effectiveness, but there is no consistent finding that flatter or taller organizations are better.

Question

Quizplus · Accepted Answer

The statement is true. The degree of vertical differentiation, or the number of hierarchical levels in an organization, can affect its effectiveness, but research findings on whether flatter or taller organizations are better are not consistent. It ultimately depends on various factors such as the organization's size, complexity, and goals.

The Degree of Vertical Differentiation Affects Organizational Effectiveness, but There