The primary advantages of a flat organizational structure in business include direct involvement of workers in the decision-making process, better communication flow, faster response times to business challenges, and an open, collaborative environment that promotes idea generation and innovation. A flat organizational structure is characterized by few or no levels of middle management between workers and a company's top executive according to Forbes.Know More
Mature businesses typically employ a hierarchical organizational structure that is shaped like a pyramid. Middle managers restrict access by low-level workers and customers to the top tiers of executives. By comparison, start-up businesses rarely have the resources to direct at hiring middle managers, resulting in a decentralized management structure where top executives and entry-level employees work side by side.
This type of flat structure is often a more organic management approach. With fewer barriers to upper management, communication between employees is streamlined, leading to faster adaptiveness when the business needs to capitalize on opportunities or respond to challenges. A horizontal structure promotes task independence with less focus on formal procedures.
It's not surprising that a flat organizational structure is popular with Internet-based companies and other businesses that have developed within a Web 2.0 social media paradigm. These new companies value collaborative work environments with open communication and investment by even the lowest-level workers in the company's social capital. These companies rely on ideas, innovation and employee engagement to keep up with a quickly changing business landscape, making a flat organizational structure the best suited to continued business success.Learn more about Managing a Business
A network organizational structure refers to a system of delegating and coordinating tasks among a number of partner companies or business entities with a common goal of producing a specific product. This arrangement gives a company the chance to collaborate with other related business entities to concertedly work toward realizing a common goal.Full Answer >
A functional organizational structure is one in which an organization is divided into different departments or functional work activities. Common functions include operations, accounting, marketing, information technology and human resources. A level of top managers typically oversees the work carried out in each functional area.Full Answer >
There are six key elements of organizational structure, according to Emaytrix.com. They are work specialization, departmentalization, chain of command, span of control, centralization and decentralization and formalization.Full Answer >
The advantages of tall organizational structures are more opportunities for advancement and more specialized managers; the disadvantages are higher costs and reduced empowerment. Organizational structures play a key role in effective communication and decision-making.Full Answer >