Advantages and Disadvantages of a Flat Organisational Structure
Flat Structure
A flat organisational structure is one where there is less hierarchy and only one chain of command. Organisations operating on a flat organisational structure encourage employee input during the decision-making process (Taylor, 2019). The Structure is Ideal for small to medium-sized organisations where decisions must be made swiftly.
A flat organisational structure 5CO01 AC(1.1) Answer
Advantages of a Flat Organisational Structure
- Employees are actively involved in decision-making, which creates an environment that promotes teamwork.
- Employee engagement is high due to the flexibility to actively participate in decision-making at work.
Disadvantages of a Flat Organisational Structure
- The organisation must regularly define who reports to whom, which results in confusion.
- Decisions are likely to overlap since there are several decision-makers.
- This organizational structure hinders long-term career advancement.
Reasons Underpinning : Employees can improve their creativity and performance by actively participating in organisation decision-making processes. Their active participation reinforces their impact on the organisation’s objectives, mission, and vision. Increased employee involvement may lead to increased job satisfaction and improved well-being at work. Netflix is an excellent illustration of a flat organizational structure. Netflix strives for timely and effective decision-making. Hernaus et al. (2020). As a result, empowering its employees to take the necessary steps to address evolving issues quickly and efficiently has substantially assisted innovation and the company’s long-term growth.
Advantages and Disadvantages of a Matrix organisational structure
Matrix Organisational Structure
In matrix structures, two command chains are used for reporting. Employees in a matrix system should report to departmental and project managers (Pakarinen & Virtanen, 2016). Matrix architectures are suited for large organisations where product innovation and creativity are central to their operations.
Advantages of a Matrix organisational structure
- Effective resource management to facilitate the successful execution of projects.
- Increased innovation and creativity within the company as a result of successfully completed projects.
Disadvantages of a Matrix organisational structure
- Power battles may arise when two project managers have differing views on how to run a specific project.
- Disagreements between departmental and project managers may result in program stagnation or sloppiness.
Reasons Underpinning : Matrix structures are excellent for product innovation and creativity as they allow for the execution of intentional projects that can bring about essential change or innovation within the organisation. Effective resource realignment with critical projects helps the organisation achieve its goals without having incurring extra costs each time a new project starts. According to Phillips, a Dutch healthcare technology business, the matrix structure is utilized to foster innovation within the organization. Creativity and innovation serve as the company’s guiding principles, with the notion that every innovation they develop will improve people’s lives.
