Ø It is modern organizational structure. In flat organizational structure functional area is expanded on flat position on the basis of nature of function. The distance between top level management and low level management is narrow. The structure has few layers of management hierarchy. It has wide span of control on management. Authority is distributed among functional area. The concept of flat organizational structure has been developed due to increment in functional area. For each functional department authority and responsibility is delegated sufficiently. It is suitable for small organization having limited business activities. Main feature are: -
a) These is high level of decentralization and delegation of authority,
b) There is wide span of control,
c) There are more functional departments,
d) There Is close and personal supervision of top level management to each department.
Advantages
a) It is less costly because it has only few manager
b) Decision making process is quick because it has only few levels of management
c) There are few levels of management so communication is quick
d) Subordinates are free from strict supervision.
Disadvantages
a) There is change of lack of discipline due to lose supervision and control,
b) There may be lack of coordination among the subordinates because there are many subordinates under one manager,
c) It may not be suitable for complex activities.
Flat organizational charts are suitable mainly for startup companies. Because in startups, responsibilities are respected more than positions.However family own businesses cannot practice a flat structure as the nature of their business. You can find some flat structure examples in the diagram community of Org Chart Software, Creately drawn on various scenarios.
ReplyDeleteA flat organizational Charts fosters a dynamic work environment by minimizing hierarchical layers. This promotes open communication, quick decision-making, and employee empowerment. With reduced bureaucracy, teams collaborate seamlessly, boosting innovation and adaptability. This approach encourages a sense of ownership, enabling organizations to navigate challenges efficiently and embrace a culture of shared responsibility.
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