virtual management networks

[tsukikage]

So, my textbook is talking about virtual (management) networks, and it says "This structure is perhaps the leanest of all organization forms because little supervision is required. [...] A network organization may have only two or three levels of hierarchy, compared with ten or more in traditional organizations." Now, I assume they're talking about hierarchy within the "core" company, in which case isn't that a bit of a red herring? I mean, if lots of levels of hierarchy is considered to be a potential source of inefficiency, would that really go away just because some of the levels of management are hidden away behind a veil of outsourcing?

ETA: "People in engineering and manufacturing almost have to be sleeping together. These guys weren't even flirting!"