What is a flat organizational structure?

A flat organizational structure can vary from company to company, however, the most common aspect of this type of business formation is the elimination of any middle-management positions. Here are some common features of a flat organizational structure:

• Increased employee responsibility

The elimination of mid-level managerial roles dictates that entry-level employees take on more responsibilities and tasks. This can cause employees to feel more valuable at their company and also lead to higher productivity rates in general.

• Enhances and simplifies internal communication

Flat organizational structures often benefit from being able to more easily disseminate key information amongst the staff. In a hierarchical structure, senior-level information and initiatives normally have to go through many channels before it reaches employees, but this is usually not the case for flat organizations.

• Cutting down on operational costs and expenses

The lack of middle-management roles creates a cost-effective approach to salaries at a company that employs a flat organizational structure. Middle-management salaries tend to be on the higher side, so the exclusion of these salaries results in a lot of money saved.

• Higher-level of engagement

Companies that use a flat organizational structure usually see higher levels of engagement with employees across the board. This engagement can be seen between employees, departments, customers, and the company as a whole.