medium · GMAT Verbal

Passage: The 'Old View' of organizational management emphasized rigid hierarchies and top-down communication to ensure efficiency. However, a 'New View' has emerged, suggesting that decentralized decision-making and cross-functional teams are better suited for the fast-paced modern economy. Critics of the New View argue that decentralization can lead to a lack of strategic alignment and slower response times in crises. The primary purpose of the passage is to:

1. Prove that hierarchical structures are obsolete in the modern economy.
2. Argue that critics of the New View have failed to understand the demands of the modern economy.
3. Advocate for the adoption of decentralized management in all modern firms.
4. Describe two contrasting perspectives on organizational management.
5. Detail the specific crises that decentralized firms are unable to handle.

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