Patacconi discusses the effect of hierarchy on coordination time within an organization. If a hierarchy is balanced, meaning that all managers at the same level have the same number of subordinates and spend the same time coordinating, then senior managers spend more time planning and coordinating than junior managers and supervise fewer direct subordinates than their lower level counterparts. If execution is the main concern of an organization, then a shift toward granting junior managers more authority in deciding how work is organized should be expected. If the main concern of the organization is cost-effective coordination of a specialized workforce efficiently, then relatively tall hierarchies are optimal. As the competitive time pressure grows, one should observe broader and flatter organizations.
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