What advantage do managers gain by moving to a more flexible structure?

Managers gain an advantage by moving to a more flexible structure primarily because it allows for more control over their different businesses. A flexible organizational structure is often characterized by less rigid hierarchies and more adaptability, enabling managers to respond more swiftly to changes in the market or environment. This flexibility can lead to enhanced decision-making and resource allocation, as managers can adjust their strategies and operations to meet the demands of each business unit more effectively.

In a flexible structure, managers are empowered to foster innovation and collaboration, as teams can work across traditional boundaries. This can lead to improved responsiveness to customer needs and market trends, allowing managers to optimize performance across various segments of their operations. Moreover, with a clear understanding of the various aspects of their business, managers can ensure that resources are allocated efficiently, fostering a culture of agility and proactive problem-solving.

Other options may have their merits in different contexts—such as reducing employee turnover or decreasing operational costs—but the fundamental advantage of increased control and responsiveness that comes from a flexible organizational structure is particularly significant for managers looking to navigate the complexities of multiple businesses.