What are some of the advantages and disadvantages of an unstructured organizational model?

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An unstructured organizational model or decentralized organizational structure is a form of organizational operations that has less of a bureaucratic or hierarchical structure. Traditional organizational models involve a top down approach, where there is a clear line of management and authority. While an unstructured model may take on forms that may have multiple lines of authority or give individuals wide discretion in key decision making. Some of the advantages of an unstructured organizational model include:

  1.  Greater flexibility and less bureaucracy
  2.  Faster decision making and efficiency
  3.  Ability to better deal with rapid change
  4.  Employee empowerment and enablement
  5.  Increased functional expertise and specialization 

Unstructured organizational models also have some inherit risk and disadvantages, which include:

  1. Less control over company direction
  2. Duplication of services and functions
  3. Increased cost for oversight, monitoring and management
  4. Over specialization and fragmentation of operations and services 

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