As a company grows and diversifies the number of levels in its hierarchy decreases.

Question

Quizplus · Accepted Answer

As a company grows and diversifies, the number of levels in its hierarchy typically increases rather than decreases. This is because there is a need to create more specialized departments and roles, and to delegate decision-making power across the organization. However, some companies may choose to simplify their structure by eliminating unnecessary layers of management, which could result in a decrease in hierarchy over time.

As a Company Grows and Diversifies the Number of Levels