InvestorPro,an Investment Consulting Firm Plans to Flatten Its Traditional Hierarchy

Multiple Choice

InvestorPro,an investment consulting firm plans to flatten its traditional hierarchy structure.The intent is to eliminate authoritarian positions in its structure and create new ones that are operationally logical.The top management agrees that none of the employees would be laid-off but only transferred from their positions to the new ones.This plan,when announced to its employees,is not taken well by lower- and middle- level management who did not want the structure to be changed.When asked for a reason,they were not able to put a strong argument.Which of the following best describes this effect?

A) Hawthorne effect
B) Paradigm effect
C) Audience effect
D) External validity