Analytical Comparison of Flat and Vertical Organizational Structures

Abstract

The emerging organizational paradigm involves complementary changes in multiple dimensions. Traditional perspectives on management are inadequate to cope with a hypercompetitive and fast changing environment. New methods and management systems are demanded by the complex, rapidly evolving, virtual business environment of present day. As economies and organizations are increasingly becoming complex, environment changing more rapidly, and acceptable response times diminishing, the old management structures are simply failing to cope with change and development. This paper has addressed the structure of modern organizations in the context of a fundamental change in organizational structure which is currently taking place in the way companies view their organizations and the inherent requirements and results. This change has involved a shift in perspective from the commonly adopted vertical organizational structure to flat type of organizational structure. Paper has also discussed the traditional organizational structures which are being replaced by flat organizational structure and aims to save capital by cost cutting. Various core benefits have also been discussed and compared with other type of organizational structures.

Keywords: Organizational Structure, Flat Organizations, hypercompetitive, vertical organizational structure, flat organizational structure.