Question

In today's business environment, companies have to find ways to remain profitable by coping with increased competition and rapid changes in technology. Many established companies reorganize, eliminating layers of management. This action usually results in a___________

Answer 1

Answer: broad span of control

Explanation: Reorganizing and eliminating layers of management in order to remain profitable often results in a broad span of control. When layers of management are eliminated, organizations tend to get flatter (a flat organization consists of fewer layers of management), spans of control (which are the areas of activity and number of functions, these managers are responsible for) get wider, and the remaining managers usually empower employees to make more decisions due to wider spans of control.