How to decide if your organisation should have a flat hierarchy?



By Swati Bhargava


An organisation’s employees are its lifeline – when they feel empowered, cared for and trusted, magic happens. That is why selecting the right structure plays a crucial role in the growth of a company.A flat hierarchy calls for fewer levels of middle management within the chain of command. It is usually suitable for companies with fewer employees.

Using this structure offers a major advantage in terms of faster decision making in start-ups as well as other small organisations. While every structure has certain challenges that must be kept in mind, approaching the negatives proactively is a great way to maximise positive impact on business and work culture.

If you want to achieve most of these goals for your organisation, then you should consider a flat hierarchy as well.

1.
To induce a deeper sense of responsibility

A flat hierarchical model is significant for encouraging employee participation and involvement in business processes. By following a flat decision-making process, the comments and feedback reach all team members quickly and easily. When the layers of middle management are reduced, the responsibilities of baseline employees increase. That is when they are motivated to work towards delivering their best for themselves and the company.

2.
To enhance the speed Of communication and increase productivity

I feel that in a flat-structured organisation, it becomes easy for employees to communicate with each other. Since there are fewer people involved in the process, there is less supervision and the speed of communication increases. At CashKaro, we have a, ‘No-Door Policy’ and everyone sits on the same floor, so communication is easier and more comfortable.

3.
To facilitate easy decision-making

Since employees are on a level-playing field, the task of decision-making becomes simpler. There is a rise in speed and clarity of communication. Also, any decision can be deftly taken by team members who are empowered to take actions without seeking multiple approvals. Wherever there are numerous layers of management approvals the time-needed for execution goes up drastically. Encouraging employees to participate in the decision-making process and letting them run with their ideasgenerally yields better results.

4.
To eliminate the need for micromanaging

Being in this business for over 6 years, I have learned that when we micromanage every detail of our employees’ tasks, we hinder their creativity. I believe that it is better to trust your employees and let them make their own moves to bring results. When workers feel entrusted, they tend to get more productive as they gain a higher sense of responsibility.

5.
To improve employee motivation and satisfaction

When we establish a flat hierarchy, it sends a message that we are open to new ideas. By giving every employee an equal voice, we get proper feedback on our processes, products, and services.

The author is the Co-Founder of CashKaro.



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