The Tribune

A company's structure goes a long way towards its success or failure. Some businesses prefer a "tall" organisational structure in which there are multiple layers of management - from top executives down to low-level managers and employees. Others benefit from a "flat" structure in which there are little to no levels of management between executives and staff employees. This type of structure is so-called because decision-making does not proceed from executives down to the rank-and-file; it occurs at the staff level. Employees have significant authority with little to no supervision.

The Bahamas has declined in the World Bank's 'ease of doing business' rankings for several consecutive years. Most blame the extensive, and deeply rooted, government bureaucracy in almost every agency and department. Even simple matters that could easily be resolved with one call or signature pass from desk to desk in a long, drawn out process that frustrates all parties.

Opting for a flat managerial structure in business has multiple benefits. Here are a few of them:

• A flat structure lowers operational costs

In a "flat" management structure you do not have the expense of hiring mid-level and low-level managers. You can use that money for other important aspects of your business, such as marketing and advertising. Flat structures typically eliminate all managers except those at executive level, so you can run a leaner operation and get more out of your staff. This increases productivity relative to the number of people you employ.

• A flat structure improves communication

One of the disadvantages of a "tall" management structure is delays in communication due to the number of layers between executives and staff employees. In a flat structure, executives and staff members communicate directly with one another without having to go through intermediaries. This not only speeds up communication, but it also makes the communication clear and understandable because clarity suffers when more people are involved in the process.

• A flat structure reduces micromanaging

When a company has multiple managers, there is a tendency for those managers to micromanage every detail of their staff's day. Micromanaging can hinder creativity because employees feel as if they cannot make any moves without being criticised. Micromanaging also stifles efficiency. The lack of trust that managers show in their subordinates often slows the work process when they must approve everything before employees can keep working on a project.

• A flat structure improves employee motivation and satisfaction

Employees in a flat-structured company have the authority to implement their ideas, and their way of doing things, as long as they produce the desired results. This empowerment not only increases productivity, but it also boosts staff motivation. When workers feel they are trusted, they are motivated to do their best and to use all their skills and talent in the service of their company. Motivated employees are happier employees, which improves job satisfaction and, most importantly, increases staff buy-in.• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at iferguson@bahamas.com.