Flat Organizational Structure

An organizational structure is used by companies to define their hierarchical structure and authority-responsibility diagrams. There are two main forms of organizational structure--the flat, or horizontal, structure and the tall, or vertical, structure.

Features

In a flat organization structure, there are few levels of command that exist between the employee and the top management. This structure is best suited to small organizations.

Function

This structure is used by organizations where employees are vested with decision-making powers. Hotels, spas, restaurants and beauty parlors use this structure. The employees are required to use their judgement and customize the product as per the customer's specifications.

Significance

This structure completely does away with bureaucracy and middle men. The management entrusts work directly to the employees. The employees in turn carry out work as per their discretion or turn directly to the top management for advice when doubts occur.

Advantages

Communication flows are greatly enhanced here. The management and the employees work together toward achieving organizational goals and objectives. As the roles of middle men are eliminated, the company does not end up paying unnecessary salaries. Also, as the employees use their judgment and discretion in carrying out work, the response times are very fast.

Disadvantages

The main problem here is that an employee might be reporting to more than one superior. There is no clarity on whose work he must complete first. Also, this structure is suited only to small organizations that have limited numbers of employees.

References

• Structural Dimensions of an Organization
• Flat Organization