Do you understand which business model your organization adapts, Flat Structure or Hierarchy Structure?

An organizational structure is a technique through which an organization shapes the process to achieve company goals and through aline communication channels and disseminate authority. 

It determines how leadership propagates in the organization. The organization follows either a Flat Business Structure or Hierarchy Business structure.  

 A Flat Organization eradicates few layers of management. In a flat structure, managers have a wide span of control over subordinates, and there is usually a short chain of command. 

This structure boosts the communication and business process. The company can cut overhead costs by minimizing the layers of management. The drawback of a flat model is it confuses the authority of work. 

This model works better for SMEs (Small & Medium Enterprises) and fails as the organization size grows. The hierarchy structure from here takes over. It is an arrangement to structure a business with identifiable ranks of experts with identifiable size-scale. The stair structure represents hierarchical relationships.

Hierarchy clearly defines the authority of work. The entire system is divided into departments and designations and defined job responsibilities. Employees find growth opportunities through this model. One of the drawbacks is, sometimes an organization loses good projects due to distortion as it goes through hierarchical layers.

As employees are aware of their set of responsibilities, the process becomes fast.