The Flattening Level of Organizations: A formal definition and its variability across firms
Marco Antonio Barrenechea Mendez (Public University of Navarre); Pedro Ortin-Angel (Autonomous University of Barcelona); Alberto Bayo-Moriones (Public University of Navarre)
Abstract
Based on the existing theoretical literature, we propose a formal definition of the flattening level of hierarchical organizations, which allows a more precise discussion on its measurement and potential correlates than informal definitions used in previous empirical research. Evidence of the relative importance of such correlates (coordination, information and communication, incentives, and workers’ knowledge) is provided using a large sample of European establishments. Unlike the prevailing theoretical approaches, which highlight the role of incentives and knowledge, our results indicate that the main correlates of flattening are related to coordination and information or communication policies.