It is designed to minimize bureaucracy. The disadvantage of using the flat organizational structure is that it can create role confusion within highly structured teams. Management Can Easily Lose Control As mentioned above, this structure is ideal for startups and small business where the number of employees is still manageable. 7. A flat organization – sometimes referred to as a horizontal organization – has few, if any, layers of supervision and management between staff and the company's top executives. In comparison to a tall organizational structure, a flat organisation structure has fewer levels of management and therefore a short chain of command. 18 Major Advantages and Disadvantages of the Payback Period, 20 Advantages and Disadvantages of Leasing a Car, 19 Advantages and Disadvantages of Debt Financing, 24 Key Advantages and Disadvantages of a C Corporation, 16 Biggest Advantages and Disadvantages of Mediation, 18 Advantages and Disadvantages of a Gated Community, 17 Big Advantages and Disadvantages of Focus Groups, 17 Key Advantages and Disadvantages of Corporate Bonds, 19 Major Advantages and Disadvantages of Annuities, 17 Biggest Advantages and Disadvantages of Advertising. Then, of course, flat organizational structure is for everyone. Flat structures tend to empower the employees more and allow them a greater sense of responsibility and autonomy. One of the greatest costs to the annual budget for a business is labor. Advantages of flat management Flat management, or even a network-based organizational structure, can provide multiple benefits for organizations at a time when the number of decisions is increasing and leaders must focus on strategic issues more than the day-to-day work. 4. One of the most significant advantages of a flat structure is that the economic costs are lower as there are far less employees. There can be a lack of responsibility definition. Excellent employees who are looking for an improvement in their rank, aside from an increase in their salary, may find it hard to find job satisfaction in this kind of organizational set up. 3. It Allows Clear Communication What usually happens when information is passed on through a series of ears and mouths is that it ended up either distorted, puffed up, or deflated. In a flat organizational structure, there is very little room for employees to move up through the business. That bickering leads to confusion, which leads to resentment, and that leads to a lack of productivity. Instead of the C-Suite needing their middle managers to collect information assets from the front-line staff and then reporting it to them, they can obtain the information directly. Can Result to Role Confusion An employee may go to work for a flat organization expecting to fulfill a defined role, but find out later that he or she needs to do many pieces of other jobs. Many people who work within a flat organizational structure find themselves always connected to their work. There Is Less Motivation While a flat organization structure may lessen the problems caused by unhealthy competition among employees, it makes it harder for ambitious workers to move up the ladder as there is very little room up there. Here are some of the additional flat organization structure advantages and disadvantages to think about. 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