10 reasons on why flatter organizations are better fit for modern businesses

1. Flatter organization nurtures strong employer- employee relationship due to its low hierarchical barrier and facility of direct communication between personnel. This feature also facilitates sharing of ideas, plans and commands between upper and lower management. Also it makes easier for employees to get their reservations addressed readily by the company’s executives. Moreover, this direct contact with upper management make employees feel more valued in an organization which directly contributes to their exceptional performance as has been the finding of famous Hawthorne experiment.

2. Flatter organizations provide a flexible working environment to its employees in which they can set their own schedules thus enabling them to maintain a healthy work life balance that is crucial for their optimum performance. Also this freedom motivates employees to achieve their goal of self actualization which, according to Maslow’s theory of motivation, is their paramount priority

3. Another source of motivation for employees in a flatter organization is its continuous learning curve. The practice of knowledge sharing and exchange of ideas help employees learn new skills. Especially the work in cross functional teams contribute to upskilling of employees skill set and help them realize the goal of career development. Thus employee’s personal growth is profound in flatter organization and over time it becomes synonymous to organization’s own success.

4. Another impetus to flatter organization is its swift communication methodologies. Due to shorter loop of communication it becomes easier for employees to cooperate and coordinate with each other. Also this feature helps organization in timely feedback and quick decision making that enables them to adapt quickly to volatile market conditions. This improved communication also promotes a clarity of vision among employees and diminishes the chance of dissemination of false information that arises due to greater layer of hierarchies.

5. The flatter organizations also reduce the operational cost of an organization through its downsizing of middle management and enable them to funnel this extra fund into areas of organizational growth such as initiation of new projects, pay increment to employees and their smart training. Consequently, modern organizations are embracing this cost effective strategy to make their business flourish.

6. Another plus of flatter organization is the participative decision making in its self managed teams. This creates a sense of ownership among employees who take on personal responsibility for the success or failure of organization’s policies. Also, due to inclusive nature of decision making employees offer no to little resistance to the implementation of policies which thus can be swiftly adopted.

7. The prime feature of flatter organization is its culture of adaptability which can be attributed to its decentralized nature of decision making which helps it in making informed timely decisions and thus keep pace with changing market trends. Also the greater deal of autonomy to employees in a flatter organization enable workers to express their creative skills and thus find innovative solutions to the complex modern problems.

8. Another factor that induces strong performance outcomes from employees in a flatter organizational model are its agile methodologies like work flexibility, adaptability, continuous learning practices and employee empowerment. These practices are not only morale boosting but also the reason behind the higher rate of job retention in flatter organizations. Thus, agile designs are responsible for the stability of an organization and also keep it immune from frequent work disruptions that happen due to high employee turnover due to low job satisfaction.

9. A big positive in a flatter organization is the job rotation of employees which enable them to perform different roles at different times according to their area of interest and concern. This trait enable employees to deal with diverse challenges and is also a source of professional recreation for them. Additionally it keeps them from getting trapped in an iron cage phenomenon as described by Max Weber in his scholarly work.

10. Another merit of flatter organization is its goal orientated approach coupled with its emphasis on Human Relations theory. Thus it becomes easier for employees to work towards organizational goals without losing sight of their own welfare.

The success of flatter organizations can also be gauged from the fact that most of the high ranking corporations like Facebook, Tesla, Whirlpool etc have also employed the same model in their organizations to scale new heights of success.

With all its merit, flatter organization has some demerits also like role ambiguity and lack of specialization. These factors can hamper the performance of employees but can be offset through the introduction of proper training mechanism and appointment of seasoned executives that can oversee a large number of employees.