Flat Organisation Structure - Advantages And Disadvantages

Flat Organisation Structure

If the span of control is wide, then there will be fewer levels of management. In other words, there will be fewer managers. This organisation structure is called Flat Organisation Structure.

Diagram below gives a sample visual preview of how a flat organisation structure must look like. Click on the following image for an enlarged preview.

Tall organisation structure.

Difference between tall and flat organisation.

Advantages of Flat Organisation Structure

Benefits or advantages of a flat organisation structure are as follows:

1. Flat Organisation is less costly because it has only few managers.
2. It creates fewer levels of management.
3. Quick decisions and actions can be taken because it has only a few levels of management.
4. Fast and clear communication is possible among these few levels of management.
5. Subordinates are free from close and strict supervision and control.
6. It is more suitable for routine and standardised activities.
7. Superiors may not be too dominating because of large numbers of subordinates.

Disadvantages of Flat Organisation Structure

Limitations or disadvantages of a flat organisation structure are as follows:

1. There are chances of loose control because there are many subordinates under one manager.
2. The discipline in the organisation may be bad due to loose control.
3. The relations between the superiors and subordinates may be bad. Close and informal relations may not be possible.
4. There may be problems of team work because there are many subordinates under one manager.
5. Flat organisation structure may create problems of coordination between various subordinates.
6. Efficient and experienced superiors are required to manage a large number of subordinates.
7. It may not be suitable for complex activities.
8. The quality of performance may be bad.