Like many other organizational structures, the flat organization structure also has its share of advantages and disadvantages. However, the flat structure also makes it harder for ambitious employees to find satisfaction. It can hinder employee retention. Why Consider a Flat Structure for Your Organization The main purpose of having a flat organizational structure is to encourage all employees to become more active and productive by giving them … Organizational structure varies in each company. This is because the less time managers have to helicopter and micromanage their employees, the more productive employees can get in day as these can give them a higher sense of responsibility. This could easily erode motivation, giving people no reason to take the extra mile in their work. It is one of those organizations where the employees literally get to practice the freedom of speech and their work rights that are the … Advantages, Disadvantages and Impact. 7. The system can pose a problem to the whole organization when the ratio of employees to managers become too out of proportion. 2. 8. Flat organization structure refers to having a relatively small number of layers in your company's organizational chart. In this structure the most trained employees get involved with decision making process. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Organizational structures play a key role in effective communication and decision-making. It Promotes Faster Decision Making Another advantage about a flat organizational structure is there are less decision-making hoops. Because the flat organizational structure is essentially a “bottom up” type of hierarchy, there is tremendous reliance on the expertise of the front-line staff. Instead of having a defined role, many companies that incorporate a flat organizational structure tend to ask people to do a little bit of everything. This con can have a great impact on the issue of respect and morale of an organization on levels of authority. 3. Whether or not it is for your business, it depends on the size and type of your company. Functional structure. There is less dominance in the workplace. If someone does not have the level of expertise that their job requirements demand of them, the C-Suite could make decisions based on false expertise. READ MORE on smallbusiness.chron.com What Is a Flat Structure in an Organization? There can be a lack of responsibility definition. Hey there Adam, I enjoyed reading your summary regarding the difference between a tall organization and flat organization in addition detailing the advantage and disadvantage between the two organizational structures. Benefits or advantages of a flat organisation structure are as follows: Flat Organisation is less costly because it has only few managers. 6. Startups and small business should weight its advantages and disadvantages before deciding to implement it in their own business. Flat structure is also known as horizontal structure. 2. The management can easily lose control when there are less people to put a brake to bad behaviors and less individuals to support or back them up on their decisions. Consequently, what is a flat Organisational structure advantages and disadvantages? 18 Major Advantages and Disadvantages of the Payback Period, 20 Advantages and Disadvantages of Leasing a Car, 19 Advantages and Disadvantages of Debt Financing, 24 Key Advantages and Disadvantages of a C Corporation, 16 Biggest Advantages and Disadvantages of Mediation, 18 Advantages and Disadvantages of a Gated Community, 17 Big Advantages and Disadvantages of Focus Groups, 17 Key Advantages and Disadvantages of Corporate Bonds, 19 Major Advantages and Disadvantages of Annuities, 17 Biggest Advantages and Disadvantages of Advertising. Instead of the C-Suite needing their middle managers to collect information assets from the front-line staff and then reporting it to them, they can obtain the information directly. Because this organizational structure is based on direct contact, there are fewer opportunities to misinterpret feedback or ideas. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who may … Management Can Easily Lose Control As mentioned above, this structure is ideal for startups and small business where the number of employees is still manageable. Bad decisions can be made under the guise of expertise. 2. Some founders do make a conscious decision to have a flat organization but it usually occurs organically when a small team of specialists come together to pursue a business idea. It is a structure that improves employee morale. Work-Relationship Could Struggle When managers have too many people to manage every day, they may find it difficult to connect with their employees on a personal level, which is crucial in maintaining trust and in stepping up the baseline of employees’ responsibility and accountability for the work and the organization as a whole. 1. The advantage of this horizontal organizational structure is that it allows decisions to be made faster. That is especially true for workers who might be in a satellite office. The system can pose a problem to the whole organization when the ratio of employees to managers become too out of proportion. Let us now take a look at its limitations. That can lead a business down the wrong path very quickly. The flat organizational structure eliminates middle management and adopts a more casual, people-powered approach to running a business. 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