A business which adopts a Flat organisational structure has minimal layers of management.
It is a common organisational structure for microbusinesses but can also be used in larger businesses.
However, as the business and the number of subordinates grow, it can become unmanageable in larger businesses because the managers become overloaded with tasks and responsibilities.
The Flat organisational structure is simple in nature, with clear lines of authority and short chains of command.
Therefore, as a business grows overtime, the owner may decide to move away from the Flat organisational structure if they feel it is negatively impacting the performance of its managers and employees in general.
Often, there is less bureaucracy and managers have a wide span of control in businesses with a Flat organisational structure.