The Challenges of Flat Organisation and Its Structure

Leadership is decentralised in a flat organisation, and there are few, if any, people at the top. If a hierarchical organisation is a mountain, a flat organisational structure is a flat plateau. There is also no seniority or executive level, and job titles may be lacking.

Some businesses may have a loosely defined senior management level, but there is almost certainly no other tier between this group and individual workers. Communication becomes easier, and staff are encouraged to participate in decision-making. Flat organisations have a function, but they can be difficult to manage when a company grows too large.

 

Why Flat Organisation is Important

Flat organisations, like any other organisational structure, can function in certain circumstances and complement various leadership styles. Laissez-faire and democratic leadership would most likely prosper in a flat corporate environment. The structure may not be suitable for everyone, but two critical elements highlight its significance.

The inclusion of employee decision-making and the absence of bureaucracy. A highly centralised structure can render an organization's innovation and creativity null and worthless. When employees have to go through multiple levels of management to get something done, productivity suffers. Workers also like to feel like they have a say in their workplace. Workers are more engaged when they are given the opportunity to make decisions regarding their work.

 

The Challenges of Flat Organisation

A flat organisation is are a newer form of business organization, and their attractiveness to self-motivated and competent employees can make them desirable. While these organisations have many advantages, any organisation that employs this style must be mindful of several drawbacks.

1. Transitioning to a flat organisation structure is tough
   A lot has to change for leaders who want to switch to this method. Leaders would have to remove levels of leadership, shift positions, and hope that people would accept the changes.

   If a corporation has a high number of middle managers, this leadership style would necessitate the elimination of such jobs.

2. Unclear roles

   Employees may appreciate the lack of red tape and a more flexible approach to interacting with senior management. The lack of clearly defined duties, though, may make employees frustrated.

   They can always inquire about their position and the tasks allotted to them. This can slow productivity and severely harm performance, and it has the potential to worsen as the organisation grows.

3. It's harder for the organisation to grow

   A flat organisational structure can work for smaller organisations. This arrangement, however, may not be sustainable as they develop. If the organisation wishes to go public, it must form a board of directors, which adds an extra layer of decision-making. A larger organisation may also result in a more complex structure.

4. There are no promotions

   Since leadership is decentralised and there are few potential roles for people to pursue, motivation and morale may suffer. Some employees prefer to believe they are striving toward something and will have the opportunity to advance at some point.

   A flat organisation does not foster an environment in which employees can be promoted.

5. The hiring process is more detailed

   Employees in a flat organisation must be self-motivated, satisfied with a lack of direction, and willing to tolerate a lack of prospects for immediate advancement. Leaders must be clear about the type of employee they want and the expectations that will be placed on them. If they fail to communicate the distinct nature of this organisational style, the person may be ineffective in this role.

 

The solutions

There are challenges, but if leaders are dedicated to making this organisational structure work, it can be profitable for the right organisation.

1. Do not force it

   While a flat organizational style may sound like a viable option, it may not be for everyone. Leadership needs to survey all employees to see how they would feel about a shift to a decentralized leadership style.

   Asking detailed questions about how they would react to various scenarios brought on by a flat leadership style will give leaders feedback on if this is a good idea. If it is not, then leadership should not force the issue as it can have an adverse impact on leadership and employee relationships.

2. Take the benefits and leave everything else

   A full move to a flat organisational structure may not be the solution. Is there an excess of middle managers? Can employees interact with senior management in a more natural way? Is it possible for the organisation to increase employee input?

   These are all advantages that a flat organisation provides to organisations, but if the structure does not work, they might find ways to reap the benefits without fully implementing the style.

3. Set up a clear line of communication

   In any organisation, communication is essential. While there are fewer rungs to climb to reach upper management, clear lines of communication should be established.

   Leaders would be responsible for assisting employees in scheduling meetings, maintaining an open-door policy that enabled questions and discussion, and fostering opportunities for collaboration.

4. Grow teams

   Employees require structure even if leadership is loosely defined. It would aid leaders in developing assigned task groups.

   They can be defined by the projects they are working on, how their tasks intersect or any other reasonable cause. This will give them the impression that they are working with a defined group of individuals and that they understand what they are doing.

5. Find a different solution to traditional promotions

   Leaders may wish to give opportunities for more extensive professional development instead of traditional promotion. This could include taking on a new project, enrolling in a class to learn a new skill, or receiving monetary compensation for discovering a successful new idea.

   The goal is to find ways for employees to gain new skills and do new things even if they are unable to take on a new formal role.

 

A flat organisation can benefit businesses by including remote workers, professionals from various cultures, and younger employees who do not prefer a hierarchical organisational flow. However, before adopting this method, leaders must be prepared to address concerns of promotion, leadership, and communication.

 

Source: Status.net