Types of Organizational Structures
Types of Organizational Structures
FLAT STRUCTURE
STRUCTURE
ADVANTAGES DISADVANTAGES
Faster Communication
Utilizes Skills within the Organization Reduced
Split Across
Motivation
Two Departments
It assists
Faster communication
individuals inas learning
there arenewfewerabilities
levels by
to It canlowers
lead tomotivation
each management
among its team members
developing because
their
communicate
allowing themwith
to collaborate
and there is
withgenerally
others from
no needmany
to own
thereset
is no
of clear
priorities,
leader
which
with they
a clear
subsequently
structure and,impose
as a
go through lengthy
departments to achieve
approval
a common
processes
goal.to maintain the on result,
their
no clear
subordinates
accountability.
and There
may iscausealso very
complex
little
hierarchy. There is also less HIERARCHICAL
miscommunication, decision STRUCTURE
promotion going on.
which means there are fewer chances of
Rapid and Effective Communication It Takes Time to Gel as New Team
misinterpretations of feedback or suggestions.
Allow ideas to flowADVANTAGES
freely and promptly among the It may take time for DISADVANTAGES
the project team to gel as a group
Engagement
project team. Little to No Progression
when it is first formed, which can be an ongoing
Clear Accountability Slow Communication
challenge for the organization.
There is a high level of involvement in the Because no one is accountable or responsible for
organization since they can
It has clear accountability and readily expressin which
responsibility their overseeing
This maythe organization,
create it progresses
communication slowly
barriers or
as this
thoughts
targets because
can be
Increases Morale there
simply is
set less
and management
clear between
accountability for not at all
organization because
has there's
many a
layers little
and to
such no
a who's
long chain inof
them and the
decisions andowners.
actions. command.
command, a message or plan must be conveyed
Members are able to compromise on a same goal and through all of them and may be misconstrued,
Reduced
purpose. Labor Costs Power Struggles
rendering the original message less effective.
Establishes Clear Authority Higher Cost
Because there are fewer managers, there are fewer Because most flat organizational structures lack
management salaries
provides defined to department.
work and pay, whichThis saves
makes theit managerial
It has a higherdefinition, it is management
cost since hard to be established
pay can be
company money. because of power
easy to determine which managers have the authority substantial, and the organization struggles due to is the composed
quantity ofof
ORGANIZATINAL STRUCTURES
to provide resources, recognize achievements, or take personnel.variety of managers.
disciplinary action.
Employees will be compelled to work harder and It has the potential to slow down decision-making.
smarter in order to advance in their careers. As they discrepancies in management at various levels that
go through the levels, they have greater opportunities might obstruct work.
for promotion, which can also increase their salaries.