At the end of World War II, goods production and services provision were each responsible for roughly one-half of economic activity and total employment in the United States. Today, the provision of services is responsible for roughly two-thirds of employment and three-quarters of total employment.

A. Can you explain the decline of centralized decision authority and the emergence of the “flat” organization style, as a natural result of these trends in aggregate economic activity and employment?

B. Is the emerging use of personal computers as Internet-centered communications devices likely to favor flat organization? Why or why not?