flat organization


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flat organization

an ORGANIZATION which has only a few managerial layers. This avoids excessive bureaucracy (see TALL ORGANIZATION); decision-making is more closely in touch with customer needs and the organization is able to adapt quickly to changes in its external environment. Small firms are usually flat organizations, but increasingly larger firms have attempted to improve their competitiveness by cutting down on their management structures and by establishing more focused business divisions. See STRATEGIC BUSINESS UNIT, RIGHTSIZING, HIERARCHY, DELAYERING.