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What happens to power and to headcount as you move down the management pyramid?
ABoth power and the number of employees rise
BPower falls while the number of employees rises
CPower rises while the number of employees falls
DBoth power and the number of employees fall
Answer & Solution
Correct answer: B. Power falls while the number of employees rises
1. The person with the most formal authority sits at the top of the hierarchy, and the higher a manager the more power that manager has.
2. The amount of power therefore decreases as you move down the management pyramid.
3. At the same time the number of employees increases as you move down the hierarchy.
4. Only the option pairing falling power with rising headcount matches both movements.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.4 Managerial Hierarchy_
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