Definition: Flat Structure [flæt ˈstrʌkʧər] is a system within the company, through which decentralized coordination of business processes and employees' actions for the performance of common corporate tasks is carried out. The creation of flat organizational structures expresses a widespread worldwide trend associated with a decrease in the level of formal control and the transition from vertical hierarchical management to horizontal. The flat organizational structure of company management allows it to react flexibly and quickly to changes in the external environment, thus creating a significant competitive advantage.
Flat Structure In a Sentence:
- Flat Structure has a competitive advantage due to its ability to handle large volumes of dynamically changing information.
- Flat Structures, having no hierarchy, are deprived of the opportunity to conduct central planning in order to effectively use the available resources and equipment.
Synonyms and related words: horizontal organizational structure, innovative structure