Organizational Structure in Human Resource Management

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Human Resource
Management
[Type the document subtitle]
11/19/2019
student name

Human Resource Management 1
There are various types of organizational structure adopted by the organizations as per the
suitability. Two of the organisation structure includes flat organization structure and
Holacratic organization structure; they are distinct from each other. Flat organizations
provide open structure with informality. Flat organization includes no or few level of middle
management among executives, managers and staff. There are various pros for this structure
like quick decision making, and increase in involvement of all the executives and staff
members (Robbins & Judge, 2017). Moreover the communication becomes more effective in
the organisation due to easy flow of communication. However, there are cons as well like
lack of coordination, risk of standardization. On the other hand, Holacratic organization
structure increases the transparency within the organization and decrease the level of
conflicts. The key advantage of this model is decrease in risk of management and employees
clashed due to lack of job titles. Moreover, higher employee commitment and responsible for
increase in competitiveness and productivity are also some pons. However, some of the
challenges like risk of inability to reach on economic downturn. From the graph below it can
be said that the key difference in both the structure are clear and formal structure for
Holacracy. Both the structures have no formal hierarchy (hrreview, 2019).
Figure 1: (Source: (hrreview, 2019)
However, such informal structures may have various disadvantages. For instance, wrong
decision making, this reflect lack of guide of expertise as the formal structure and formal
authority also reflect good decision making due to higher expertise. Work life balance is also
disturbed due to informal structure and no designated authority. Nevertheless, considering the

Human Resource Management 2
advantage and disadvantage of both the structures, it can be said that these structures can be
feasible for small scale organization and fast growing business (hrreview, 2019).