Tall and flat organisations The staff structures of a tall organisation and a flat organisation Tall organisations Advantages. Pros and Cons of Flat Organizational Structure PRO: Decision making. It means that the company has to shed out less amount of money in terms of salaries, benefits etc. Flat organization structure refers to having a relatively small number of layers in your company's organizational chart. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . for the management level. The benefits of a flat organizational structure are. Limitations or disadvantages of a flat organisation structure are as follows: There are chances of loose control because there are many subordinates under one manager. Flat hierarchies: a general definition. Disadvantages of Flat Organisation Structure. Below is a comparison between the two structures. Cost-efficient – There are very few managerial layers in a flat organizational structure. In a flat organizational structure, there is very little room for employees to move up through the business. When correctly used, it can lead to faster decisions, happier employees and satisfied customers, but when implemented the wrong way, it can cause job confusion and low levels of … The discipline in the organisation may be bad due to loose control. An organisational structure is how a business organises its staff to represent the different layers of management. Hierarchical Structure vs Flat Structure can only be understood when compared to the same metrics. Hierarchical Structure vs Flat Structure. There are advantages to this -- it lowers the problems caused by unhealthy competition. Horizontal (flat) structures and hierarchical (tall) structures. Advantages: The main advantages of the simple structure are the following: i. A flat organizational structure is defined by few management layers that have a broader span of authority. The relations between the superiors and subordinates may be bad. Much media attention has focused on holacracies, but actually holacracy is just one type of flat hierarchy that became popular due to its adoption by well-known companies operating in Silicon Valley and the wider technology sector.. What holacracies and other forms of flat hierarchies have in common is a smaller-than-normal layer of middle management. Simple Organisational Structure: The widely prevailing organisational structure found in respect of very small enterprises is a simple one. All the authority and decision-making is concentrated in the owner manager who often directly supervises all the activities. 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