Final answer:
The creation of horizontal (departments) and vertical levels (organizational hierarchy) brings about efficiencies through specialization and coordination, but at the same time produces increased communication, decreased efficiency, increased coordination, and decreased specialization.
Step-by-step explanation:
The creation of horizontal (departments) and vertical levels (organizational hierarchy) brings about efficiencies through specialization and coordination, but at the same time produces increased communication, decreased efficiency, increased coordination, and decreased specialization
The creation of horizontal departments allows for specialization, where employees focus on specific tasks or functions within the organization. This can lead to increased efficiency as employees become experts in their respective areas. However, specialization can also lead to decreased efficiency if there is lack of coordination and communication between different departments or levels of the organizational hierarchy.