Abstract

In a laboratory experiment, tall and flat organization structures were tested for their effects on group performance. Comparisons of performance on the time taken to complete decisions showed no significant difference between tall and flat organization structures. Although it took longer to process decisions through the several levels of a tall structure, groups with flat organization took more time to resolve conflicts and *to coordinate efforts. Tall organization structures were superior on two other measures of performance: profits and rate of return on revenues. Apparently the greater number of levels in the tall structure provided for more frequent evaluation of decisions and better performance on these two variables.

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