I need a respone to this students post with citations included?

Your response to another student must be 6 sentences and have one source. Responses to students should add to the discussion. That statement I agree or just rewording the same post will not count for point. Do not forget the intext citations and works cited.

The type of hierarchy a company should have really depends on several factors. These factors include: the kind of strategy a company wants to use, the size of the company, as well as the kind of business the company conducts (Gitman, 2018). When it comes to strategy, two big ones are cost cutting and innovation. For cost cutting, there needs to be a lot more control coming from the top down, so a more centralized, mechanistic kind of structure would be beneficial. This can allow for a more centralized scope of power that does not get convoluted with others taking charge like the flat structure would allow. This type of structure also allows for more specialized training to be able to perform certain tasks or jobs. A more innovative approach would require a little more flexibility to come from all parts of the company. Companies that are more focused on innovating do not fare well with a more centralized and higher structure because the structure itself does not really allow for the flow of ideas to go from one layer of management to another. When it comes to how big a company is, sometimes the organizational structure kind of forms itself; larger companies tend to have more of a tall structure naturally as more and more people come together, and smaller companies tend to have a more flat structure for the lack of personnel. The type of business a company does greatly affects the kind of structure because of adaptability. In unstable business environments, more innovation and flow of ideas is needed, so a flatter structure is used; in more stable business environments, there is not always such a need for innovation and the owner may know that sector of business better than anyone, so a taller approach is used (Gitman, 2018). Facebook is an example of a flat business organization, and everyone works in an open office space with each other, including Zuckerberg (Enterprise Management 360, 2020). An example of business with a tall organization is McDonalds due to the size and many layers of management.

Enterprise Management 360. (2020, April 15). Top 10 Companies with a Flat Organizational Structure. Youtube.

Gitman, L. J. (2018). Organizational Design Considerations. In L. J. Gitman, Introduction to Business. Houston: OpenStax.