Flat organisational structure business plan

The internal factors determine how the organization moves forward, both as a self-contained organizational entity and in response to its external environment. Mission Why does an organization exist?

Flat organisational structure business plan

Organizational structure[ edit ] In flat organizations, the number of people directly supervised by each manager is large, and the number of people in the chain of command above one is small.

Moreover, managers in a flat organization rely less on guidance from superiors because the number of superiors above the manager is limited.

This structure is generally possible only in smaller organizations or individual units within larger organizations. Having reached a critical size, organizations can retain a streamlined structure but cannot keep a completely flat manager-to-staff relationship without impacting productivity.

A company would not have to give a raise or promotion, based on service length but on greater productivity. Also eliminating certain departments from the payroll means saving money. The flat organization model promotes employee involvement through a decentralized decision-making process.

By elevating the level of responsibility of baseline employees and eliminating layers of middle managementcomments and feedback reach all personnel involved in decisions more quickly. Expected response to customer feedback becomes more rapid.

Self-managing teams[ edit ] A "strong form" of flat organization is an organization with no middle management at all.

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Very small businesses may lack middle managers because there are too few staff to justify hiring middle managers; in this type of organization, the business owner or the CEO may perform some of the functions performed by middle managers in larger organizations. However, some organizations do not take on middle managers even as they become larger, and remain extremely flat.

flat organisational structure business plan

An organization which has self-managing teams, that organize their own work without the need for a middle manager or supervisor above the team, may meet or closely approximate this model.

This can cause conflict with people whose career path expectations include a promotionwhich may not be available within the organization due to its flat structure. However, due to the fact that significant responsibilities are given to the team members themselves, if a team collectively arrives at the view that the procedures it is following are outdated, or could be improved, it may be able to change them.

If executive management is not involved in the decision, or merely rubber-stamps it, this might be an example of consensus decision-making or workplace democracy at the level of a team - or group of teams, if multiple teams are involved in the decision.

The foremost example of a company with self-managing teams is Valve Corporationwhich also has rotating, not permanent, team leaders - which Valve terms "group contributors", in recognition of the fact that contributing individually and leading at Valve form a spectrum, not a binary dichotomy.

This is known as open allocationand means that employees can switch to another team at any time, no questions asked; all desks are on wheels to make this easy.

Cliff Oswick from Cass Business Schoolwho has studied Valve and other examples of "non-leadership", believes that Valve works because it hires high-calibre people who are a good fit for the leaderless environment, and because it was founded as a flat organization from the outset, so that new hires always knew what they were getting into.

Reaktora Finnish software and design consultancy with employees has a flat hierarchy and self-managing teams, and also shares all the relevant business numbers with all of their employees.

However, in response to criticism, GitHub introduced a layer of middle management in The Morning Star Companywhich has no supervising managers.The clear disadvantage with the professional structure is the lack of control that senior executives can exercise, because authority and power are .

An organizational chart shows the internal structure of an organization or company. The employees and positions are represented by boxes or other shapes, sometimes including photos, contact information, email and page links, icons and illustrations.

Jun 30,  · Employees in a flat organizational structure are given significant authority with little to no supervision. Choosing this type of structure has multiple benefits for your business. Jun 30,  · An organizational structure indicates the method that an organization employs to delineate lines of communication, policies, authority and responsibilities.

It . Today’s preferred “flat” organizational structure with few hierarchical levels and looser boundaries–the kind that Google has valued since its beginning–may attract more talent and allow. Webpage on Management Functions, Human Resource Management, Economic and Social Environment, Accounting and Finance for Managers, Marketing, Management Information System, Quantitative Analysis, Management Economics, Organisational Design Development & Change, Strategic Management, Social Processes and .

Flat organization - Wikipedia