Question

In: Operations Management

Why do you think companies are moving toward flatter, more organic structures? Do you think this...

Why do you think companies are moving toward flatter, more organic structures? Do you think this is appropriate? Why or why not?

Solutions

Expert Solution

I think companies are moving towards flatter and more organic structures because of the following reasons:

· Flatter or organic structure is a cost-efficient structure that supports the multi-layered relationship between executives and staff.

· Flatter structures promote a faster decision-making process.

· It allows a smooth and well-coordinated communication which ensures the structural development of an organization.

· Flatter structure does not need any steady control and dominance. Instead, it is freer, and employees are allowed to do what they think to be the best

No, it is not entirely appropriate because of the following reasons:

· Management loses control very soon over the operational activities in a flat and organic structure.

· The work-relationship issue becomes a fatal issue for the management in a flat structure.

· It creates a power struggle between management and employees.

· A flat organizational structure creates difficulty in an employee retention policy.


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