Home Economy 11 Key Advantages and Disadvantages of a Flat Organizational Structure 11 Key Advantages and Disadvantages of a Flat Organizational Structure Economy Jul 7, Flat organizational structure is an organizational model with few or in most cases no levels of middle management between the executives and the staff level employees. It was designed with the idea that knowledgeable and well-trained workers will be more productive when they are directly involved in the decision making process of the organization, rather than being supervised by many management layers. In other words, employee involvement is promoted by decentralizing the decision-making process and elevating the levels of responsibility of employees.
Some groupings lead to a highly defined and mechanistic structure. Other ways of departmentalizing create a loose and more free-flowing organization.
Possible structures include functional, divisional, matrix, team and network. Functional Organization Structures The functional organizational structure groups people by typical broad business activities -- marketing, finance, human resources and production -- then further subdivides as necessary. This results in a vertical, hierarchical structure.
Advantages include efficiency and clear lines of authority, communication and accountability. Workers easily coordinate and communicate within their departments. Unfortunately, a departmental focus causes interdepartmental communication and coordination to suffer.
Hierarchical layers mean ideas for change must brave a bureaucratic chain of command. Functional structures are the most controlled and mechanized but also the least nimble and adaptive to changes in their environment.
Each division operates as a separate company, complete with all the necessary functions, though sometimes upper management controls some functional areas such as finance.
Additionally, interdivisional rivalries and poor communication and coordination among units may result. However, the divisional structure lets each product line excel, better serves customer niches and can cater to geographic and cultural differences.
Each person belongs to a functional department such as production, reporting to a boss above.
Each person also answers to a project team or business unit. Teams benefit from the functional expertise of members, while the functional hierarchy exerts a measure of control and accountability for business activities. The downside is, of course, that everyone has two bosses with possible conflicting interests and loyalties.
Divisional and functional power struggles can erupt. Each team is empowered to meet its goal, taking responsibility for results. Team participants hold the power. The company sheds its management layers, resulting in a horizontal rather than vertical structure.
Without chains of command, decisions are made more quickly and the company becomes adaptable and able to move nimbly within the marketplace. Meanwhile, empowered individuals make for motivated, invested employees.
The risk of the team structure lies in employee control. Workers must be trained to take on challenges. The networking company can employ few workers, while enjoying the reach, capacity and functionality of a larger business.
It may, for instance, hire an outside manufacturer to produce its products. The network structure lowers costs and gains flexibility because it uses outside help according to need. Creating a network-based company, however, means losing control over whatever processes the company delegates to others.
References Rose State College: Management -- Leading and Collaborating in a Competitive World About the Author Sophie Johnson is a freelance writer and editor of both print and film media. A freelancer for more than 20 years, Johnson has had the opportunity to cover topics ranging from construction to music to celebrity interviews.Organizations both large and small require structure in order to operate and meet the organization's goals.
One of the approaches to solving this problem is to use an hierarchical structure. Hierarchical structures tend to resemble pyramids, with the highest levels of power and authority at the very top.
The disadvantages of Functional Organization: The functional organization may have unhealthy competition working with the other areas. There may be a lack of understanding as to how significant that specific are to the company. Major advantages - 1. Immutable data structures are quite simple in a way that it has only state and remains in one state.
It becomes easier to reason.
Advantages and Disadvantages of Structural Steel Structures January 04, | 0 comments Today, practically all industries have major applications of structural steel. The matrix structure blends the functional and divisional structures, gaining the advantages of both.
Each person belongs to a functional department such as production, reporting to a boss above. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work.
This is a type of organizational structure which facilitates a horizontal flow of .