Topic 4: organizational context business Process

When Flatter Organization Structure Is Better

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When Flatter Organization Structure Is Better
Flatter organizations are supported by devolution of responsibility, the empowerment of workers. An action plan on empowerment generally involves flattening the organization by removing as many hierarchical layers as possible and delegating authority and responsibility. Cross functional groups are formed and assigned to work with the plans by focusing on processes rather than functions. The groups also workout targets for processes, such as the objectives for resource planning.
Advantages Of Flattening The Organization
1. In depth skill development where an employee in an organization is given an opportunity to perform and improve his or her skills with minimum supervision.
2. Strategic decisions are made at the top and this allows top managers to coordinate and controls the organization easily.
3. There is efficient utilization of resources by grouping of similar tasks and thus making economies of scale possible.
4. There is faster and better communication. Eg. Through use of email senior executives can exchange information with a larger and diverse group of employees.
5. There is a wide span of control since one manager is in charge of many individuals and he or she will have abetter opportunity of practicing managerial skills.
Disadvantages Of Flattening The Organization
6. There is poor coordination across functions. I.e. members of each department may feel disassociated and hostile towards other departments.
7. Members of each department maybe myopic. I.e. they have short-term goal as they concentrate on departmental goal rather than organizational goals.

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8. Flattening an organization structure can be very destructive and severely reduce capability especially if shortsighted, because it has led to many instances of reduced profits and substantially weakened organizations for many succeeding years

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