Question

7. Discuss the advantage organisations with a flat hierarchical management structure have in adapting to consumer or market trends.

Answer 1

A flat hierarchical management structure is considered as an organisation which hardly have any levels between the employees of the organisation and the top management team of the organisation. Organisation with flat hierarchical structure have various benefits during operation.

In a flat organisational structure, employees of the organisation can directly communicate with executives and the top management team of the organisation. This is how the employees can convey the message regarding the current trend in the buying behavior of the consumers to the management team. This is how the organisation can work more effectively in order to make the consumers satisfied.

In a flat organisation, decisions can be taken by any one and every one after consulting with the team leader. Since, in today's business environment markets are changing rapidly it is necessary for the organisation to take decisions for any situation very quickly without any delay. Therefore, flat structure can easily adapt the change in the market or the market trend very easily rather than the pure hierarchical structure.