Final answer:
It is true that dynamic environments benefit from flatter organizational hierarchies to enhance planning effectiveness, as this allows for greater flexibility, faster decision-making, and improved team collaboration.
Step-by-step explanation:
The statement that dynamic environments require a flatter organizational hierarchy in order to plan effectively is true. In today's rapidly changing workplace, influenced by advances in technology, economic shifts, globalization, and the need for quick decisions, a flatter organizational structure is increasingly adopted. These environments benefit from flatter hierarchies as it is easier to delegate work to teams that bring together diverse skills and expertise.
While bureaucracies improved efficiency during the Industrial Revolution with clear chains of command, the current information age sees such rigid structures potentially decreasing productivity and efficiency. Therefore, many organizations are moving away from strict hierarchies towards more flexible, team-based structures. Work teams, rather than individual base structures, are formed to tackle specific tasks or goals, although the effectiveness of teams is continually researched.
Despite the benefits, rigid hierarchies and bureaucracies have downsides. They are often resistant to change and may perpetuate existing imbalances of power. In contrast, a flatter hierarchy aims to ensure equal opportunities and can more readily adapt to shifting economic and societal dynamics.