A tall management hierarchy employs several layers of middle management characterized by a limited span of control and resulting in some middle managers reporting to other middle managers. A flat hierarchy eliminates these layers and features only one or two levels of middle management. Each manager controls a wider span of employees. Southwest uses a flat organizational structure.
Southwest features a single layer of middle management which focuses on specific functions. These include operations, marketing, planning and labor relations. Additionally at the front line, customer-facing level, Southwest features a team approach. Supervisors often have less than 10 employees reporting to them and they all share team successes and failures.
With a flat organizational structure, information can quickly be disseminated, encouraging greater communication and coordination between different levels of management. The flat hierarchy also empowers supervisor-led teams, facilitating innovation such as better customer service techniques.
