In traditional hierarchical companies (e.g., banks, government agencies), decisions flow from the top down. A CEO makes a strategic decision, which passes to VPs, then to middle managers, and finally to employees. While this provides clear authority, it can slow down innovation.
Breaking Down the Walls: The Shift to Flat Management the business 2.0 b2 upper intermediate pdf 36
In contrast, a flat structure (common in tech startups like Valve or Buffer) minimizes management layers. Employees often report directly to leadership or work in self-managed teams. This encourages faster decision-making and greater responsibility. In traditional hierarchical companies (e