Businesses use organisational structures to illustrate job roles and responsibilities. Organisational structures show who each employee reports to in their job. Show The interconnected world means organizations rely less and less on traditional pyramid structures, but more on collaboration. This ideal represents the nature of leadership in a flat organization. An even playing field allows organizations to leverage employee talent, passions and expertise to better apply these to business challenges. The business world thinks of traditional leadership consisting of managers and subordinates, but contemporary structures blur the lines between leadership and following — although leadership is more of a skill than a technical role. It should stand to reason that all workers take part in leadership. Where does that leave management inside work functions and relationships? In a flat organization, there are little to no management levels between "superiors" and staff. It promotes an increased involvement in decision-making with less supervision. A flat structure elevates each employee's responsibility inside the organization and eliminates excess management layers to improve coordination and communication. Fewer levels between employees improve the decision-making process among staff. The lack of need for middle management boosts the organization's budget. With a flat structure, there is a risk for generalization and confusion if the company fails to hone and specifically direct team goals and talents. Organizations with a flat structure find success when they allow specialists to pursue passion projects that serve the organization with team support. That means dividing up into smaller units. Many hierarchical structures lose their entrepreneurial spirit, and to inspire its return, organizations increasingly turn to the flat structure that characterizes many startups. This switch of structure allows employees to pursue projects they find meaning in and do well at, tapping into the talents and resources of their colleagues. However, these projects must fit within company objectives and goals. Flat Organizations and Company GrowthMedium, Buffer and Zappos all stood behind the power of the flat structure to empower employees and unite them. However, as companies grow, the need for leadership and delegation increases — and without a plan, flat organizations stagnate, as an entrepreneurial spirit isn't enough to power business growth. So, what kinds of ground rules apply as a company grows? 6Wunderkinder uses the flat structure, and as they grow, they consider setting time limits to track whether employee-led projects are working, or if they need to get called off. The flat structure allows leaders to communicate the goings-on of the company versus telling people what to do, finding more of a meaningful role in coaching employees who find more satisfaction in their work. Integrating Flat Structures with Company Goals and CultureThe hierarchic organization of a company may cause issues such as the rejection of high-potential projects that must pass through excessive decision-making filters. The more filters, the more likely a great project gets rejected that could positively impact company growth. Many leaders only see projects that meet the probability of getting funded, leaving great ideas — and the coach able employees behind them — in the dust. Research supports this point that when many levels exist in an organization concerning the total amount of employees, information experiences distortion as it goes through hierarchical layers. Employees feel the need to bypass their superiors or use them as messengers. Employers can strive to make the passing of information more transparent and involve employees more in the presentation and decision-making processes. Cutting through those layers also boosts the speed of how and when decisions get made. The time it takes to bring a product to market reduces, too. A study of 300 executive leaders across the globe discovered the higher degree of organization layers, the slower the company reached customers with new services and products. Reduce the layers to boost speed, efficiency and performance. Companies may achieve these same results through outsourcing but integrating flat structure into company operations creates more benefits and opportunities while saving money. A company can cut overhead costs by minimizing the layers of management and, therefore, empowering employees to take the lead and pursue their passions. Companies must have clearly defined missions, goals and growth plans to be successful with a flat structure in the long term. When that's in place, employees find their place, meaning and passion for the work. They feel motivated to pursue leadership and projects to further their career and the company. Retention and positive work culture run high, while costs run low.
The structure you choose for your business goes a long way toward your success or failure, so choosing wisely is essential. Some businesses prefer a tall organizational structure in which there are multiple layers of management from top executives down to low-level managers and employees. However, some businesses benefit from a flat organizational structure in which there are no levels of management between executives and staff employees.
In a flat structure, decision making occurs at the staff level; it doesn’t proceed from executives down to the rank-and-file. Employees in a flat organizational structure are given significant authority with little to no supervision. This means you don’t have the expense of hiring mid-level and low-level managers. You can use that money for other important aspects of your business such as marketing and advertising. Flat structures typically eliminate all managers except executive-level managers, so you can run a leaner operation and get more out of your staff, which increases productivity relative to the number of people you employ.
One of the disadvantages of a tall organizational structure is the slow rate of communication due to the number of management layers between executives and staff employees. In a flat structure, executives and staff members communicate directly with one another without having to go through intermediaries. This not only speeds up communication, but it also makes the communication clear and understandable because clarity suffers when more people are involved in the communication process.
When a company has multiple managers, there is a tendency for those managers to micromanage every detail of the daily tasks that staff members must complete. Micromanaging can hinder creativity because employees feel as if they can’t make any moves without being criticized. Micromanaging also stifles efficiency. The lack of trust that managers show for their subordinates often slows the work process when they must approve everything before employees can keep working on a project.
Employees in a flat-structured organization have the authority to implement their ideas and their way of doing things as long as they produce the desired results. This empowerment not only increases productivity, but it also boosts staff motivation. When workers feel as if they are trusted, they are motivated to do their best and to use all their skills and talent in service to their company. Motivated employees are happier employees, which improves job satisfaction, and most importantly, elevates staff member buy-in. When a company utilizes a flat organizational structure, there are fewer, if any, levels of middle management included within the chain of command. The hierarchy still begins with the company’s C-Suite, but there isn’t a “buffer layer” between them and the front-line staff. The advantage of this horizontal organizational structure is that it allows decisions to be made faster. 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. Faster decisions create highly satisfied customers and often improves employee morale. The disadvantage of using the flat organizational structure is that it can create role confusion within highly structured teams. When there is confusion within the employee base, that often translates to confusion within the customer base. Confused customers become unhappy customers and that can change their brand loyalty. Here are some of the additional flat organization structure advantages and disadvantages to think about. What Are the Advantages of a Flat Organizational Structure?1. The cost structure of a business is improved. 2. It is a structure that improves employee morale. 3. There is less miscommunication. 4. There is less dominance in the workplace. 5. It can improve employee retention. What Are the Disadvantages of a Flat Organizational Structure?1. Bad decisions can be made under the guise of expertise. 2. It can lead to a lot of wasted time. 3. This structure can limit productivity. 4. It isn’t scalable. 5. There is a lack of work-life balance. 6. It can encourage power struggles. 7. It can hinder employee retention. 8. There can be a lack of responsibility definition. These flat organizational structure advantages and disadvantages show us that when it is implemented with a clear plan, it can be successful. Every structure has certain challenges that must be met, but when these negatives are proactively approached, their impact to the business and each worker can be effectively minimized. |