Question

IBM recently went through a major reorganization that included firing more than 10,000 people. One result of this change means it is likely that IBM responded to the challenge of a rapidly changing marketplace by:__________

a. increasing the size of their traditional departments to handle 24/7 operations.
b. flattening their organization and empowering their employees, allowing them to get closer to the customer.
c. centralizing their decision making to better control their total quality management program.
d. acquiring additional firms

Answer 1

Answer:

IBM

b. flattening their organization and empowering their employees, allowing them to get closer to the customer.

Explanation:

By firing more than 10,000 people during a major reorganization, IBM removed many middle managerial layers, thus flattening the organization.  As a result, employees down the managerial ladder will be empowered to work closely with IBM customers.  What is achieved is called a flat organization, which has few or no levels of middle managers.  A flat organization improves communication between the executive and the customer-facing employees.