> It is all about efficient use of real estate.
To be completely accurate, it's all about maximizing profit and minimizing costs, which in this case means having as many people in a given amount of floor space as is legally possible.
The benefit of the low cost per person of office space is weighed against the negatives:
* Employee attitude/positive workplace (hard to measure)
* Difficulties introduced to the workplace by the increased density - noise, psychological effects, smells, etc (hard to measure/easily dismissed)
* A less pleasant workplace makes employee retention work less well (difficult to measure)
The other up side of the open plan space is that it's a project that an otherwise ineffective manager can do to appear valuable.
The real elephant in the room of open plan offices is "hoteling", IE employees are supposed to sit down at the first open space and start working. The real reason this is implemented is that assigning spaces in an open plan is difficult, and hoteling avoids arguments over who gets the better spot (near the restrooms, vending machines, windows, or whatever) and avoids the work of tracking employee seating and doing assignments.
However, in every single open plan space I've worked in, everyone sits in the same location every day. Despite this being obvious, no one ever seems to remember this when they decide on yet another open plan office conversion.