The primary advantages of a flat organizational structure in business include direct involvement of workers in the decision-making process, better communication flow, faster response times to business challenges, and an open, collaborative environment that promotes idea generation and innovation. A flat organizational structure is characterized by few or no levels of middle management between workers and a company's top executive according to Forbes.Continue Reading
Mature businesses typically employ a hierarchical organizational structure that is shaped like a pyramid. Middle managers restrict access by low-level workers and customers to the top tiers of executives. By comparison, start-up businesses rarely have the resources to direct at hiring middle managers, resulting in a decentralized management structure where top executives and entry-level employees work side by side.
This type of flat structure is often a more organic management approach. With fewer barriers to upper management, communication between employees is streamlined, leading to faster adaptiveness when the business needs to capitalize on opportunities or respond to challenges. A horizontal structure promotes task independence with less focus on formal procedures.
It's not surprising that a flat organizational structure is popular with Internet-based companies and other businesses that have developed within a Web 2.0 social media paradigm. These new companies value collaborative work environments with open communication and investment by even the lowest-level workers in the company's social capital. These companies rely on ideas, innovation and employee engagement to keep up with a quickly changing business landscape, making a flat organizational structure the best suited to continued business success.Learn more about Managing a Business
Management structure refers to the organization of the hierarchy of authority, which defines accountability and communication channels within an organization and with its external environment. Each organization has its unique management structure based on its operations, but the common denominator present in every organization's management structure is that it defines the flow of responsibility within an organization. It also defines who is responsible for each role in an organization.Full Answer >
According to the Houston Chronicle, the biggest internal factors that affect a business are organizational structure and communication within the organization. These factors lead to motivated employees who feel they have defined roles in the organization and contribute to its overall success.Full Answer >
The advantages of delegation include developing other workers into better managers, freeing up time, improving motivation and morale, helping in timely completion of tasks, enhancing decision-making and allowing productivity. The disadvantages include a lackluster performance of a worker, lack of enough time to train a worker and the risk of choosing the wrong person. Using the authority of delegation effectively will ensure the best results from a workforce.Full Answer >
General standards for a management system may include a series of regular audits and evaluations, a clear definition of authority and work flow and an infrastructure for communication amongst all employees. The system may also include details about the process of assigning work within a department and for obtaining necessary training or certification.Full Answer >