easy · GMAT Verbal Reasoning
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:
- Prove that hierarchical structures are obsolete in the modern economy.
- Argue that critics of the New View have failed to understand the demands of the modern economy.
- Advocate for the adoption of decentralized management in all modern firms.
- Describe two contrasting perspectives on organizational management.
- Detail the specific crises that decentralized firms are unable to handle.
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