How can a flat organizational structure boost employee engagement and motivation?

Are you looking for ways to improve your team's performance, creativity, and satisfaction at work? If so, you might want to consider adopting a flat organizational structure, or a system that reduces the number of hierarchical levels and empowers employees to make decisions and collaborate across functions. In this article, we'll explore how a flat organizational structure can boost employee engagement and motivation, and what challenges and best practices you need to be aware of.

1 What is a flat organizational structure?

A flat organizational structure is a type of organizational design that minimizes the layers of management and authority between the top and the bottom of the organization. In a flat structure, employees have more autonomy, responsibility, and access to information and resources. They also have more opportunities to communicate and cooperate with their peers and leaders, and to participate in the strategic direction and innovation of the organization.

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Tyler Kralovic

Operations Executive | Strategic Leader | Coach | Speaker | People Developer | Husband | Father
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One thing that I’ve found quite incredible, in my experience, is the capability of a team when they are empowered to make decisions and know that they will be supported in those decisions. The key here is the support given to those employees. Encouraging employees to make solid, well-thought out decisions and make them confidently will contribute to a strong flat organizational structure. Mistakes will be made, but that’s how the team can learn when and where to escalate to leads or management. It’s all about encouraging the confident behavior you want out of your team.

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Gail Cheney, PhD

Senior Director of Organizational Development at Tlingit & Haida Central Council
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As we move at a furious pace of change, we have less time to respond and make decisions. A flat structure encourages both quicker decision-making and eases collaboration.

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Ursula M. Pfahl, Ph.D.

Chief Strategic Engagement Officer, Baker Senior Center Naples
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The quality of internal communication, vertically and laterally, is critically important. When employees believe that they have the information, resources, and authority to act within their position parameters, they will engage and contribute to the enterprise.

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Tammy Perkins

Chief People Officer at ProService
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I suggest keeping your teams small and flexible. Having too many layers of management can create confusion and lead to clumsy decision-making. It can also result in bureaucracy and inefficiency in the workflow. To avoid these issues, consider simplifying your structure to empower your employees and customers. You can also address the manager's span of control, which refers to how many direct reports are under a single manager. An adaptable span of control can help ensure that the essential work gets done. A leader should be evaluated based on their influence and impact rather than the number of people who report to them.

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2 Why is employee engagement and motivation important?

Employee engagement and motivation are key factors that influence the productivity, performance, and retention of your workforce. Engaged and motivated employees are more likely to be committed, loyal, creative, and proactive in their work. They also tend to have higher levels of satisfaction, well-being, and morale. On the other hand, disengaged and demotivated employees are more likely to be absent, turnover, or perform poorly. They also tend to have lower levels of trust, respect, and enthusiasm for their work.

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Mercedes Iris Laurenza

Consultant at National Directorate of Drugs and Sanitary Tecnologies | Buenos Aires, Argentina.
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Según lo que hemos visto en estudios locales donde trabajo, el compromiso no sólo afecta la productividad, sino también la calidad del trabajo en términos de valor. Las personas mas comprometidas aportan más valor y talento a su trabajo y viceversa. En esos entornos donde el desarrollo profesional, la participación y la habilitación de espacios para aportar valor, las personas tienden a estar más comprometidas.

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3 How can a flat organizational structure boost employee engagement and motivation?

A flat organizational structure can boost employee engagement and motivation by providing several benefits, such as increased empowerment and ownership, enhanced collaboration and communication, and greater alignment and recognition. Employees have more freedom to make decisions, better access to other functions, teams, and leaders, and a clearer understanding of the organization's vision. They also receive more frequent feedback and appreciation from their leaders and peers. All of this can enhance their sense of competence, confidence, accountability, trust, purpose, belonging, and value.

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4 What are the challenges and drawbacks of a flat organizational structure?

A flat organizational structure can present a variety of challenges and drawbacks, such as reduced clarity and consistency for employees regarding their roles and responsibilities, as well as conflicts or overlaps with other functions or teams. This can lead to an increased workload and stress, with employees having to manage complex tasks and uncertain changes. Additionally, there may be fewer opportunities for career advancement and development, including less access to mentoring, coaching, or training. Furthermore, there could be less differentiation in compensation or rewards.

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5 What are the best practices for implementing a flat organizational structure?

In order to effectively implement a flat organizational structure, it is necessary to follow some best practices. This includes defining and communicating the purpose, goals, and values of your organization and how a flat structure supports them, as well as involving and engaging employees in the change process. Additionally, roles and processes need to be clarified and simplified, with roles being aligned across the organization. Resources, information, and authority should be provided to employees to enable them to do their work effectively and efficiently. A culture of learning, innovation, and teamwork should be fostered through collaboration and communication. Finally, employees should be offered opportunities for growth and development as well as tailored compensation and rewards.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Tyler Kralovic

Operations Executive | Strategic Leader | Coach | Speaker | People Developer | Husband | Father
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I strongly believe in having a flat organization and providing opportunities for high-performers to become LEADs on their team. Being a lead gives future leaders the opportunity to develop soft skills by managing more responsibility while still being very close and engaged with the day to day business. LEADs in my organization, are typically vocal, hard working, and possess leadership qualities as well as raw talent. People tend to look up to them organically, even before becoming a lead. These are the people you need to develop and build into the future of your organization. It’s important to assess your LEAD program each year to make sure the employees in these lead roles: want to be there, and are there for the right reasons.

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Tammy Perkins

Chief People Officer at ProService
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Organizational structure is vital to success. A coordinated team effort is more important than individual heroics. Assess if the leadership team has the skills to address future challenges. Fill any gaps. A well-aligned team facilitates work. Identify new challenges and fill gaps in skills, experience, or knowledge. Leaders must collaborate effectively, address challenges, and handle conflicts.

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How can a flat organizational structure boost employee engagement and motivation?

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1 What is a flat organizational structure?

2 Why is employee engagement and motivation important?

3 How can a flat organizational structure boost employee engagement and motivation?

4 What are the challenges and drawbacks of a flat organizational structure?

5 What are the best practices for implementing a flat organizational structure?

6 Here’s what else to consider

Organizational Structure

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