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However, the flat structure also makes it harder for ambitious employees to find satisfaction. An organisational structure is how a business organises its staff to represent the different layers of management. The benefits of a flat organizational structure are. Flat organization structure refers to having a relatively small number of layers in your company's organizational chart. Disadvantages of Flat Organisation Structure. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Decision making is quite simple and easy in a flat organization. Limitations or disadvantages of a flat organisation structure are as follows: There are chances of loose control because there are many subordinates under one manager. Horizontal (flat) structures and hierarchical (tall) structures. All the authority and decision-making is concentrated in the owner manager who often directly supervises all the activities. 5 Advantages and Disadvantages of the Matrix Organizational Structure November 23, 2020 When a business initiates a project, it can be crucial to have an organizational structure in place to define all the aspects of the project. Flat hierarchies: a general definition. Hierarchical Structure vs Flat Structure can only be understood when compared to the same metrics. Below is a comparison between the two structures. It means that the company has to shed out less amount of money in terms of salaries, benefits etc. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Cost-efficient – There are very few managerial layers in a flat organizational structure. Advantages, Disadvantages and Impact. The discipline in the organisation may be bad due to loose control. 1. Tall and flat organisations The staff structures of a tall organisation and a flat organisation Tall organisations Advantages. When correctly used, it can lead to faster decisions, happier employees and satisfied customers, but when implemented the wrong way, it can cause job confusion and low levels of … Much media attention has focused on holacracies, but actually holacracy is just one type of flat hierarchy that became popular due to its adoption by well-known companies operating in Silicon Valley and the wider technology sector.. What holacracies and other forms of flat hierarchies have in common is a smaller-than-normal layer of middle management. Pros and Cons of Flat Organizational Structure PRO: Decision making. Hierarchical Structure vs Flat Structure. In a flat organizational structure, there is very little room for employees to move up through the business. 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