Question

According to Jeffrey Pfeffer, how did managers in top-performing companies achieve financial performance?

1) By increasing status distinctions
2) By decreasing status distinctions
3) By maintaining status distinctions
4) By ignoring status distinctions

Answer 1

Managers in top-performing companies decreased status distinctions to improve financial performance, fostering a more cohesive and motivated workforce.

Step-by-step explanation:

According to Jeffrey Pfeffer, managers in top-performing companies achieved financial performance by decreasing status distinctions. Pfeffer's research in organizational behavior and human resource management indicated that flatter organizational structures, with fewer hierarchical divisions, tend to perform better financially.

This approach encourages more open communication, collaboration, and a sense of shared purpose among employees. By reducing barriers between different levels within the company, managers can foster a more cohesive and motivated workforce.