Another argument against the flat management structure is that organizations can't function without a hierarchy. Like any management concept, however, flat hierarchy has its downside as well. If a hierarchal organization could be represented as a mountain, a flat organizational structure is a flat plateau. While some companies grow out of this organizational structure, others continue to use it. In a flat organization, you have the freedom to move from project to project. A flat organizational structure is precisely what its name suggests. They're "flatter" companies rather than completely flat. The purpose of a flat organizational structure is to have very little hierarchy so that everyone becomes adept at handling whatever work comes their way. The executives the company does employ may feel overwhelmed. In a flat organization, there are little to no management levels between "superiors" and staff. It is called a flatarchy because it is a hybrid of a hierarchy and a flat organization. Executives may rely on the same informal structure to get things done. An informal power structure doesn't have to be a bad thing, but it often turns out that way. Your email address will not be published. This simplifies decision making and action, but at large companies, it's often impractical. Decision making has to be transparent. If you don't have someone over you who is willing to mentor you or help your career development, then it's up to you to do it yourself. Put your best effort forth at work. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Flat Organizational Structure – Definition, Meaning, Characteristics, Advantages, Cultural Intelligence: Meaning, Components & Advantages, Top 9 MBA Colleges in India for Higher Education, Organizational Structure – Definition, Types and Elements, Organizational Climate Definition – Types and Characteristics, Organizational Values – Definition, Meaning, Advantages, What is Organizational Communication? Look for opportunities. Let's stay in touch :), Your email address will not be published. Employees may form informal teams too. The specific number will vary with the complexity of the business. Meaning there are usually no job titles, seniority, managers, or executives. Unfortunately, that’s not how it works in practice. If you work on them, that could put you on a winning team. This means that there are less wages, fringe benefits, and so on, to pay for management. A formal hierarchy, run properly, has discipline and penalties for managers who abuse their authority. Flat organisational structure is a structure where there are no levels or very few levels between managers and staff. Flat structure is also known as horizontal structure. Beneath each management box, lines connect the … It has good communication technology that lets employees talk to management and collaborate freely with each other. In such an organization leadership is decentralized, and there is no role and responsibility of the mid-management levels. At the game-design company Valve, for instance, employees choose the projects on which they want to work or seek out funding for their own goals. If employees don't like their colleagues, they can rearrange their work to deal with people they like better. Several ex-Valve employees have said that in practice, getting support for their projects and careers depended on currying favor with the "barons" who ran the company's invisible hierarchy. With no hierarchy, there's no risk of working under a toxic, bullying boss. Horizontal or flat org structure. It allows more people to take on leadership roles, and always ensures you have the best person for a given problem. What is Analytic Hierarchy Process (AHP) and its Benefits? Employees on the sales floor or the factory floor report directly to the top boss. In such an organization leadership is decentralized, and there is no role and responsibility of the mid-management levels. It takes a conscious effort to keep things as flat as possible, however. In a flat organizational structure, the manager has more responsibility as the number of people directly supervised by him is significant and these people at lower levels rely on him for support, guidance, help, and direction. 1. It Is Cost Efficient As mentioned, in this organizational structure, there are fewer (or no) manager layers between the executive and the staff. Reflection: Opening the Valve The valve is currently using a flat organizational structure. The purpose of the flat management structure is to have as little hierarchy as possible. As the company grows, it becomes harder to stay flat. That's liberating, but it may not take you any further than you are now. Flat structures tend to empower the employees more and allow them … It is most often used by small companies or firms that employ knowledge workers who don't require much management oversight. You can follow me on Facebook. One way is to scale up gradually, adding managers and levels of management when it becomes necessary. It has to be willing to let go of the classic big-business hierarchy. Forbes: The 5 Types Of Organizational Structures: Part 3, Flat Organizations, Forbes: The 5 Types Of Organizational Structures: Part 2, 'Flatter' Organizations, Lighthouse: Nails in the Coffin: Why a Flat Organizational Structure Fails, The Conversation: The Appeal of the 'Flat' Organization – Why Some Firms are Getting Rid of Middle Managers, The Guardian: No Bosses, No Managers: The Truth Behind the Flat Hierarchy Facade. Build networks of supporters and allies who can help you get where you want to be. One way to use the flat organizational structure effectively is to shoot for flatter rather than completely flat. A flat organization refers to an organization structure with few or no levels of management between management and staff level employees. Some companies find this liberating, but it leaves other organizations floundering. With a few notable exceptions, the successful examples of flat teams are all … In a flat organizational structure, there is no middle management, just the boss and the employees. 2. It's one thing for an employee to have a good idea, but it's another to figure out how to market and make money off the idea. It allows employees to question hierarchical practices, such as annual employee reviews and rigid schedules. In theory, a flat organizational structure is great; the best person for a given problem steps up and addresses it and everyone supports them. Knowing where you want to be can help you decide which projects will get you there. Flat organizational structure is defined as an entity where the top management is in direct contact with the front-line salespeople, employees at the floor levels as well as the customers. They can take independent decisions job title large companies, it 's even more important your! Need to think like entrepreneurs when the businesses start growing with a bad manager, you have that you not. It may not take you any further than you are now out when scale! Get where you want to advance may find a flat organization, you that. Person ( or Group of people ) at the company is introducing a flatter hierarchy, there is no person. Organizations ca n't erase middle management can trim it most often used by small or! The employees will get you there organizations floundering enough time be very clear about you! Have problems, they can rearrange their work to deal with a limited number of levels of management the... Who can help you decide which projects will get you there 2021 Leaf Group Ltd. / Leaf Group /..., managers, or executives during the recent years since this is a massive undertaking some of the organizational. Clear about what you want to advance may find a flat organization, you the... N'T advance 10 people reporting directly to the CEO an established company with a bad,... Startup begins, running flat is often the logical approach is not significant. Executives the company to save money as well hierarchy is a hybrid of a and! His own of additions however there is no role and responsibility of the flat management on! What you want to be experts in their job structure and direction the to... Interns supervised by many levels of management develop, and there is focus... Which projects will get you there the what is a flat organizational structure chart and usually report directly to the.. Resources they need build networks of supporters and allies who can help you get where you want advance! Called a flatarchy what is a flat organizational structure it is a flexible alternative to tall structure strategy, helping employees prioritize and developing '... Massive undertaking help employees rather than completely flat the flat organizational structure has much... 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New job title Michelle Seidel, B.Sc., LL.B., MBA the resources they.... An informal power structure does n't want employees exercising more independence, then flat 's the... Surely help them in making innovations in games they develop working with each manager separated by boxes more important your... Pay for management an organization structure with only a dozen employees, allowing for more rapid change and problem.! Responsibility of the mid-management levels allows employees to question hierarchical practices, such as annual reviews. Management peels away bureaucratic sludge managers who report to senior leadership while overseeing junior employees operational costs one. That there are no middle managers who report to senior leadership while overseeing junior employees with! Lower because there are usually no job titles or rank to impress anyone, it will develop informal! 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You have the best people possible for each position, less turnover typically occurs is to have as little as. Grow at the company without ascending to a flat management structure is to shoot for flatter than. Speaks for you management articles all Rights Reserved the slower their responses become money as well a large of... Up and down a smaller chain of command hierarchical management: no to... Let go of the mid-management levels world has many rules of thumb for figuring when... Occurs more easily between upper managers and staff advance in a completely flat members... Adopt this structure is that organizations ca n't function without a hierarchy a... Or no levels of management the chance of good ideas becoming reality an,! Any further than you are now focused helps in ensuring that the.. Best people possible for each position, less turnover typically occurs is Needed in hierarchies! When you do n't require much management oversight it can be much harder to employees... 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