An org chart shows an enterprise’s workflow and authority structure. Normally, organizations in the world can be categorized into hierarchical and non hierarchical ones. The hierarchical org chart type accounts for the majority of the worldwide corporate framework of business organizations, while a non hierarchical organization has fewer centralized authority with fewer management levels.
In the following example of a technology startup, each member in their own department has equal authority and power. Moreover, one member is selected from each department to collect and share info with other departments.
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Main Types of Non Hierarchical Organization
- The Flat type has fewer layers and individual employee reports to a single leader.
- The Matrix type has an ever more complex framework with the combination of both divisional and functional departments.
Key Advantages of The Non Hierarchical Organization Type
- Encourage functional diversity between different roles or departments in an enterprise. Everyone can join in a project and make a contribution.
- Encourage individual work creativity instead of fixed roles.
- Encourage flexibility so enterprises can share or adapt resources freely to face changing conditions.
Non Hierarchical Organization Type VS Hierarchical Ones: How to Choose?
Effective and suitable organizational design would really help companies to achieve goals. You should keep in mind some key points when selecting the best type.
Use Non Hierarchical Structures If:
- The industrial market trend is changing quite often, so non hierarchical ones are more likely to survive in such a situation.
- Your product or service is designed or developed based on innovation, or if you wanna more free ideas or brainstorm chances in your team.
Don’t Build a Non Hierarchical Organization If:
- You still wanna maintain power or authority in your different management levels or departments. Try to find out what kind of personal characteristics of employees are in your team: do they prefer to listen and follow to certain leaders, or do they have strong leadership spirit?
- The product development cycle requires more durations and discussions for team communications. An individual employee may need to report to their managers during every planning stage.
I Wanna Go for the Non Hierarchical Structure. What Next?
If you wanna build a non hierarchical organization, then you should hold a series of meetings or discussions with everyone in your organization from department managers to new interns. Topics you should talk about may include:
- the clarification of the decision-making process and related duties
- the training scheme or programs for communication skills or teamwork
- the willingness to learn and adjust new ways of communication