Simple Organisational Structure: The widely prevailing organisational structure found in respect of very small enterprises is a simple one. In a flat organizational structure, there is very little room for employees to move up through the business. 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 … There are advantages to this -- it lowers the problems caused by unhealthy competition. Cost-efficient – There are very few managerial layers in a flat organizational structure. 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. Tall and flat organisations The staff structures of a tall organisation and a flat organisation Tall organisations Advantages. However, the flat structure also makes it harder for ambitious employees to find satisfaction. Flat organization structure refers to having a relatively small number of layers in your company's organizational chart. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . An organisational structure is how a business organises its staff to represent the different layers of management. The relations between the superiors and subordinates may be bad. Advantages, Disadvantages and Impact. for the management level. Horizontal (flat) structures and hierarchical (tall) structures. The benefits of a flat organizational structure are. 1. Decision making is quite simple and easy in a flat organization. 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. Hierarchical Structure vs Flat Structure. Below is a comparison between the two structures. Disadvantages of Flat Organisation Structure. Pros and Cons of Flat Organizational Structure PRO: Decision making. It means that the company has to shed out less amount of money in terms of salaries, benefits etc. Hierarchical Structure vs Flat Structure can only be understood when compared to the same metrics. 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. The discipline in the organisation may be bad due to loose control. 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. Flat hierarchies: a general definition. A flat organizational structure is defined by few management layers that have a broader span of authority. Advantages: The main advantages of the simple structure are the following: i. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. 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