" Some organizations reduce hierarchical reporting lines because they are seen as barriers that hinder decision-making. As the organization grows…

The scenario describes a flat organizational structure. This model is characterized by having few or no levels of middle management between staff and executives. The primary purpose is to reduce bureaucracy and remove hierarchical barriers, thereby accelerating communication and decision-making. The statement that these structures become a challenge to maintain as an organization grows is a well-documented limitation of the flat model, as the lack of management layers can lead to a loss of control and a broad span of control for senior leaders.

A. Matrix: This structure involves dual reporting lines (e.g., to a functional and a project manager), which often increases complexity rather than reducing hierarchy.

C. Functional: This is a traditional, hierarchical structure where the organization is divided by specialty or function, which is the type of model the described approach seeks to change.

D. Divisional: This structure organizes by product, service, or geography, and while it decentralizes some authority, it typically retains a traditional hierarchy within each division.

1. AXELOS. (2020). ITIL® 4 Specialist: Create, Deliver and Support. TSO (The Stationery Office).

Section 2.2.1, Organizational structures: This section states, "Traditional hierarchical structures are often seen as a barrier to the fast and efficient flow of work... As a result, many organizations are moving towards flatter, more dynamic structures that are better suited to the modern digital environment." This directly supports the rationale presented in the question for adopting a structure with reduced hierarchy.

2. Ghiselli, E. E., & Siegel, J. P. (1972). Leadership and Managerial Success in Tall and Flat Organization Structures. Personnel Psychology, 25(4), 617–624.

Page 617: The article discusses the core differences, noting that flat organizations are characterized by "a minimum of supervisory levels" and are intended to improve communication and decision-making speed, contrasting with taller, more hierarchical structures.

3. Burton, R. M., & Obel, B. (2018). The science of organizational design: A research-based perspective. In The Oxford Handbook of Management.

This academic text explains that flat structures aim to "reduce the length of the scalar chain" to increase responsiveness and employee empowerment, but notes the scalability challenges mentioned in the question.