Final answer:
ABC Inc. uses a network structure to connect with outside suppliers and service contractors, which facilitates flexibility and quick adaptation to market changes. This type of structure is part of a broader trend of using flat organizational structures that encourage teamwork and input across all organizational levels.
Step-by-step explanation:
ABC Inc. uses information technology to connect with outside suppliers and service contractors, which is characteristic of a network structure. In a network structure, companies focus on their core competencies and outsource other processes to external companies. This approach enhances flexibility and allows organizations to adapt quickly to market changes. Unlike vertical, hierarchical structures with many levels of management, modern businesses often utilize flat organizational structures, encouraging teamwork and decreasing the emphasis on traditional hierarchical status.
It is becoming increasingly common for businesses to seek input from all levels of an organization. For instance, a director might solicit feedback from an entry-level employee, indicating a more collegial relationship between managers and co-workers. This is indicative of a trend where the importance of having flat organizational structures is recognized for fostering innovation and responsiveness in the business environment.