Final answer:
True: Cross-functional teams consist of members from different functional areas but similar levels in an organization, and are designed to respond effectively to various business and workplace changes.
Step-by-step explanation:
The statement is True: Cross-functional teams are indeed composed of employees from approximately the same hierarchical level but from different functional areas within the organization. These teams combine diverse skills, experiences, and expertise to delegate work effectively and respond to changes in factors such as technology, economics, foreign competition, globalization, and workplace demographics. The trend towards flat organizational structures facilitates this, enabling more direct collaboration between hierarchical levels and fostering workplace demographics that value input from a broad spectrum of employees.
Within organizations, there are three basic types of teams: problem resolution, creative, and tactical teams. There is also increasing interest in a fourth type of team known as the virtual team, which accommodates geographically disparate individuals through digital communication technology. The effectiveness of teams in enhancing productivity is an active area of research, and diverse teams are often seen as potentially more innovative than homogenous ones.
Hiring for cultural fit can maintain the status quo but may also stifle innovation if not managed carefully. It's critical to recognize the value of diversity within teams to drive innovative solutions and prevent the stagnation of ideas.