Flat Organizational Structure Advantages and Disadvantages
A flat organizational structure is a business that has fewer layers of management, but these managers have a wider range of authority over other employees. This structure can be greatly beneficial to business because it thrives on the input and suggestions of employees rather than executive decisions that employees have no say in. It can also backfire if not used correctly, leading to a mistrust and anger from the employees.
While many medium and large scale companies have been using flat organizational structures for quite some time, start up companies and small businesses should weight the pros and cons of this type of business structure very carefully before making the decision on whether or not to implement it within their own business.
Advantages of Flat Organizational Structure
The following are some of the advantages that you can get when you follow this kind of organizational structure:
More Cost Efficient
The need for many managers is cut with a flat organizational structure, meaning that there are less wages to pay for management.
The fewer people that have to be consulted about a decision, the faster the decision can be made. This makes a flat organizational structure extremely beneficial. There are far less managers and people to consult on decisions within the company.
The small level of authority figures in the business leads to a more effective form of communication. The direct input that is taken from employees also leads to less behind the curtain operations and schemes to take place.
Less Dominance And Supervision
While many people may argue that this is an absolute con of a flat organization structure for business, many would also beg to differ. The less management there is, the less time said managers have to helicopter and micromanage employees. This, in turn, leads to a high sense of responsibility among employees and a more productive work day all around.
Disadvantages of Flat Organizational Structure
Though it may seem that a flat organizational structure has many advantages, you should still know that this kind of structure still has its limitations. The following are some of its disadvantages:
Loss Of Control
When the ratio of employees to managers become too out of whack, it is easy to lose control of a situation. There are less people to put the brakes to bad behavior and even less people to back them up on their decisions.
Work Relations Struggle
When there are so many employees to mange, managers may find it difficult to connect with people on a personal level, simply due to the fact that they have so many people to manage. This can greatly impact the respect and morale of a company on all levels of authority.
These are just some of the advantages and disadvantages that you should know about the choosing to apply this kind of flat organizational structure. As you learn to be familiar with these flat organizational structure advantages and disadvantages, you will start deciding whether the organizational structure will be helpful with your business and will make your management prosper in the long run.