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Since there are minimal or no levels of middle management, a company that adopts this structure well can end up being more productive by speeding up the decision-making processes.Apart from increased productivity, firms with flat organizations have leaner budgets since they don’t involve any pricey middle-management salaries.
The only drawback to adopting a functional organization is the fact that there’s delay in decision-making.
This article on the different types of organizations explore the various categories that organizational structures can fall into.
Organizational structures can be tall, meaning that there are multiple tiers between the entry-level workers and A CEO, short for Chief Executive Officer, is the highest-ranking individual in a company or organization.
Also referred to as a bureaucratic structure, a functional organization is one that divides a firm’s operations based on specialties.
Ideally, there’s an individual in charge of a particular function.