Organisational Structure- Amazon

Amazon has a flat organisational structure. It has its own advantages and disadvantages.

Advantages | Disadvantages |

Faster decision, satisfied and happy customers | Job confusion, decreased customer loyalty |

Communication is faster and effective since there are few layers | Workers may have more than one boss and their functions can become confused |

Few levels of management means more flexibility in decision making .For eg. When the staff can make decisions quickly, they keep customers happy instead of forcing them to wait while they hunt down a manager. | When all the subordinates are reporting to a single executive, it's hard for the executives to be team leaders and keep their employees organized and productive. |

Since manager compensation is typically more than other employees, fewer management levels means fewer managers to pay, which saves you money | Flat structure works well in small organizations but it becomes counterproductive in large organizations because the offices are too different and have troublesome. For eg. In Amazon, there have been instances where customers were given a discount on an item in one country. This does not promote good customer relations. |

This structure focuses on highly qualified staff who are generally happier at work and less likely to quit their job or perform poorly. The longer the employees remain with the company, the less training you have to pay for and the more competent and productive they become. | But there is always a constant pressure to perform and the since the focus is on skilled employees, they thrive towards more perfection of the employees. So positive feedback from seniors and promotions are rare. Only exceptional talent is promoted. |

In Amazon, OLR system gives employees an opportunity to perform outstanding and thus get noticed in the management eyes and thus get a promotion, because it is the boss and the higher management team who decide the promotion. | Employees have a...