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Flat organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
What is Flat Organizational Structure ?
A flat organization refers to an organization structure with few or no levels of management between management and staff level employees. The flat organization supervises employees less while promoting their increased involvement in the decision-making process.
Advantages of a Flat Structure
- It elevates the employees' level of responsibility in the organization.
- It removes excess layers of management and improves the coordination and speed of communication between employees.
- Fewer levels of management encourage an easier decision-making process among employees.
- Eliminating the salaries of middle management reduces an organization's budget costs.
Disadvantages of a Flat Structure
- Employees often lack a specific boss to report to, which creates confusion and possible power struggles among management.
- Flat organizations tend to produce a lot of generalists but no specialists. The specific job function of employees may not be clear.
- Flat structure may limit long-term growth of an organization; management may decide against new opportunities in an effort to maintain the structure.
- Larger organizations struggle to adapt the flat structure, unless the company divides into smaller, more manageable units.
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