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Franchisors Should Have Flat Organizations
Posted by Ed Teixeira
Throughout my business career I've always been a proponent of a flat organizational structure versus more traditional hierarchies. Dealing with entities in the healthcare industry provided me a good lesson on why the highly structured organizations can be a problem. In the case of the franchise industry, there are a number of reasons why a flat organizational structure works best. Following are some examples why franchisors and large franchisees should employ a flat organizational structure:
- Communication lines are more direct
- Information and feedback can more easily flow from the bottom up
- More efficient and less costly
- Easier to manage from top down
- No room to "hide"
- Less chance of the "company" message being misinterpreted
- Direct span of control encourages more manager decision making
When it comes to growing and developing an organization go for the flat structure over more cumbersome ones.
Posted on November 28, 2011 at 11:30 AM
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