Question

In: Operations Management

What are the benefits of a flat organization?

What are the benefits of a flat organization?

Solutions

Expert Solution

Flat organizational structure

The organization with a flat organizational structure will have very few levels of hierarchy or no hierarchy at all. In an flat organizational structure, employees are all treated equally and no supervision is required and the employees work with enhanced responsibility.

Benefits of flat organization

Faster decision making

In a flat organizational structure, the decision making process is rapid due to the improved communication between different departments. Decisions are made and implemented at the right time and the employees can directly communicate with the board of directors and decision making authorities.

Employee productivity

The productivity of the employees get improved due to the responsibility. Every employee is responsible for their task and dependency is very less and so, they try to improve their productivity.

No supervision

No supervision is required in a flat organization and the reporting required is minimal. Everyone in the organization is aware of the responsibilities the other one is handling. There is no need for micromanaging and every employee is comfortable in achieving their tasks rather than the fear of being supervised.

Cost efficient

Flat organizational structure is cost efficient because there are no managers required to manage the things and employees are capable of handling the tasks by themselves and they improve their efficiency and knowledge.

Improved communication

Employees can directly contact the CEO and communicate their thoughts and ideas to them.

Creativity

The thought process of the employees are identified by the management and improvements can be made in the organization.


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