What are the advantages and disadvantages of "flat" and "pyramid" management levels?

Pyramid Advantages:

Stronger response to market changes.

Reducing the number of layers of corporate management is more conducive to upward and downward communication of information.

Reduces the cost of a large number of middle managers.

Management is more familiar with the grass-roots employees, drawing closer to the sense of intimacy.

Pyramid Disadvantages:

Each manager is responsible for a large number of employees, the growth process of the employees do not get adequate and effective guidance.

Due to the increase in the scope of management, the manager's energy is more easily dispersed, and downward effective communication is reduced.

The sharp decrease in promotion channels makes it easy to lose talent, and the cost of replacing talent is even higher.

Everyone can participate in decision-making, leading to confusion.

Flat advantages:

(1) First of all, the enterprise management level can be greatly reduced, the control amplitude is greatly expanded flat management is the original task of uploading and downloading intermediate management level reduction. Drucker, an American management expert, pointed out at the heart of the matter: "the most common disease of poor organization, that is, the most serious disease, is too many levels of management, a basic principle of organizational structure is to minimize the level of management, as far as possible, to form a shortest chain of command".

The Haier Group, for example, has transformed its original functional structure into a process network structure, and its vertical business structure into a horizontal business process, which has enabled the company to achieve the "three zeros" -- zero distance to the customer, zero capital occupation and zero defects in quality.

(2) The second is the ability of enterprises to adapt to market changes greatly improve the pyramid-shaped enterprises on the fast-changing market reaction is slow, and flat management of the decision-making tentacles directly to the market, according to the ever-changing information in a timely manner to make decisions and can be immediately responded to and implemented. Such as GuoShiNa chairman of the original IBM "centralized" pyramid into a flat type of organizational structure, once because of institutional bloat and become staggering IBM on the market sensitivity and adaptability greatly increased.

(3) Decentralized management has become a popular trend

Flat enterprise is the implementation of decentralized management is the main center of power downward, the grassroots organizations are relatively independent of each other, to minimize the decision-making in time and space on the delay in the process, which will improve decision-making democratization and the efficiency of decision-making.

(4) Excellent human resources are more likely to grow

Flat management, only a few levels of managers, especially the first-line managers must directly face the market, independently exercise many of the original functions owned and exercised by the top management, the managers of the organization and management capabilities and decision-making ability to put forward higher requirements, it is easier to grow up as soon as possible in the real world, it is also easier to It is easier to grow up as soon as possible in the real world, and it is also easier to form a team that complements each other and cooperates with each other.

Disadvantages of flattening:

(1) the cost of replacement of personnel becomes high: after the compression of flat management, the right to be concentrated in only a few levels, for a certain level of people, the need to master the skills of the people, once the need to replace the personnel, it is difficult to find the right candidate.

(2) Loss of talent: fewer levels and too much competition lead to the loss of talent.

(3) Reduced effective communication: Due to the increase in management scope, managers' energies are more dispersed, and communication time and downward focus are reduced.