Few tiers of middle management—or, in some situations, none at all—are present between the leadership and the workforce in flat businesses. Because they have fewer employees and less of a need for hierarchical administration, small businesses and startups frequently have flat structures.

What is a Flat Organizational Structure?

Delayering is the process of flattening an organization or changing a hierarchical organization into one with a flatter structure. This procedure entails:

● Establishing channels for dialogue and cooperation

● Reducing the organizational structure’s hierarchy by one or more levels

The middle management layer is frequently eliminated. Although delayering typically results in an increase in the senior management’s average span of control inside the company, it does not always imply a reduction in staff or expenses. Flattening can be a useful tactic for increasing operating efficiency, lowering wage expenses, and reducing red tape, despite being difficult and time-consuming.

When there are few or no tiers of middle management between the leadership and the workforce, an organizational structure is said to be flat. Due to their modest size and lack of necessity for hierarchical management, small enterprises and startups usually feature flat organizational structures. In a flat organization, there are fewer steps between an entry-level worker and the CEO, giving most workers a higher sense of responsibility and autonomy. Additionally, they are better able to make important judgments alone.

How Does it Work?

The authority, control, and reporting structures for employees are determined by the organizational structure of a corporation. For instance, in a hierarchical system, front-line managers report to the employees. Middle managers are subordinate to these front-line supervisors. Top-level managers are responsible for these managers. For the purposes of representing authority, control, and communication, this structure typically forms a pyramid. There aren’t many layers of administration in an organizational structure that is flat.

As a result, employees will directly report to senior supervisors. As a result, both lower-level managers and employees share responsibility for middle management. In most cases, it translates to more power and freedom for the employee. The absence of multiple levels of bureaucracy inside the business may also increase efficiency. This organizational structure may help more independent workers feel motivated.

Who Can Use

Small businesses tend to have flattened organizational structures because they can afford to give employees enormous power and open access to executives without sacrificing their ability to operate efficiently. It is also customary for larger businesses with flat organizational structures to have a set process in place that runs smoothly without the involvement of middle management.

An organizational structure that is more flat may be
advantageous for businesses that place high importance on innovation and decision-making.

Advantages

Although it won’t work for all kinds of organizations, flat structures provide the following advantages:

➔  Improved ties and communication between various positions

➔  A stronger sense of unity due to less hierarchy

➔  A shorter chain of command facilitate easy, quicker decision-making and a business’s flexibility to adjust and adapt, which increases employees’ job satisfaction. more freedom

➔  More independence can boost creativity and productivity.

➔  Ability to reduce operating expenses

For small to medium-sized organizations or businesses that start off small and scale this strategy gradually as they expand, a flat structure is appropriate. For larger organizations with hundreds or thousands of employees, the absence of hierarchy is rarely feasible or scalable. Such businesses typically have a hierarchical organizational structure.

Disadvantages

Like every organizational structure, flat hierarchies have drawbacks. The following are some common drawbacks of a flat organizational structure:

➔  Generalization and confusion risk

➔   Lower sense of accountability if it’s unclear to whom employees should report because they can have more than one supervisor

➔  Lack of employee specialization and particular job functions increase the danger of power disputes in the absence of a formal framework.

➔  Absence of long-term development or advancement opportunities

➔  Challenges to expanding and increasing the business

Implementing a Flattening Organizational Structure: Some Helpful Hints

If you’re interested in creating a flattened organizational structure at work, take a look at the following advice:

● Give people access to the tools: Employees must have access to the resources they require since they can solve problems and operate autonomously without input from various layers of management. Consider creating a central location where all staff members can access the data they require regarding policies, practices, and processes in order to make educated decisions.

● Make provisions for staff advancement inside the organization: There can be fewer opportunities for employees to advance in the company if you choose a flattened organizational structure. For many people, career development is critical, thus it’s crucial to design organizational structures that allow them to do so.

● Share your expectations: Employees may have autonomy and decision-making authority without requiring formal managerial approval, but it’s still crucial that they are aware of what is expected of them. This can provide the worker with some guidance and make them feel at ease carrying out their regular duties.

● Create training: Proper and thorough training is required if you want to feel supported as an employee in an organizational structure that has been flattened. Think carefully about the most crucial information to convey to staff members, from new hires to more seasoned personnel, and establish training programs to help them feel comfortable in their roles.

● Create a policy of open doors: Create an open-door policy if there isn’t one already so workers are aware that they can speak with executives directly about any issues, suggestions, or questions they may have. Make sure you are explicit about your employees’ ability to approach executives in the company because it is crucial that they feel at ease doing so.

Examples of Companies That Have a Flat Hierarchy

Valve
A video game firm called Valve has chosen a flat structure for staffing and delineating roles and duties, similar to many contemporary corporations. In fact, the game firm has emphasized this choice to fully do away with bosses more and more. Although Gabe Newell, the company’s founder, and CEO, has a formal title, he plays a considerably less active role than the typical executive.

McDonald’s
Each and every McDonald’s location is a flat structure. The other assistants and employees are under the management of the manager at each workplace. He makes all of the decisions and oversees the key operations, including R & D, marketing, finance, and human resources. The other employees handle sales.

Squarespace
Squarespace, a tech startup, is regularly cited as one of the greatest places to work in New York. He worked with open flats, creative teams, and teams with minimal management tiers between the workforce and their leaders. Squarespace employs its flat organizational structure to promote innovative thinking and teamwork.

W. L. Gore
Since 1998, Gore has consistently ranked among the Fortune 100 best companies to work for. As a result, efforts have been made to empower their associates—what the company refers to as its employees—to help run the company, work together, and forge connections through a latticed communication system.

Facebook
Facebook is renowned for its outstanding workplace environment and distinctive take on the flat organizational structure. Facebook Management and team leaders at Billy work in the same open office space as all other employees, including Mark Zuckerberg, helping to
mitigate the hazards of an otherwise potentially stressful and competitive tech-focused environment.

Nike
The distinctive corporate structure of Nike is particularly noteworthy. All Nike divisions and affiliates report to the company’s worldwide headquarters, which has a flat organizational structure. With an oval Nike brand name, several divisions may, nevertheless, function practically independently, allowing the business to remain innovative while upholding consistency.

Qamcom
With the removal of the CEO, the company’s last remaining hierarchical position, Qamcom took the final steps toward becoming a fully flat organization in 2019. Qamcom’s row-based responsibility structure guarantees that decisions can always be made by the right people at the right time, positively affecting both project efficiency and business success.