True or False: A tall organization typically incurs lower expenses than a flat organization due to increased supervision.

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Prepare for UCF MAN3025 Management of Organizations Exam 3 with practice questions, flashcards, and explanations. Master the concepts and excel in your test!

A tall organization typically has more layers of management and, therefore, more supervisors overseeing employees. This structure often leads to higher operational costs because each layer requires salaries, benefits, and additional resources for managers at each level. In contrast, a flat organization has fewer management levels, resulting in lower costs associated with supervision and management. The fewer layers in a flat organization can lead to quicker decision-making, increased communication efficiency, and reduced bureaucratic overhead.

While it is important to note that different organizations may experience varying outcomes based on their unique contexts, the general principle is that the additional supervision found in a tall organization usually translates to higher expenses. Thus, the assertion that a tall organization incurs lower expenses than a flat organization is incorrect.