simple structure

A simple structure is a basic organizational system that a company uses to centralize its operations. Also referred to as the flat structure, a simple management structure is usually characterized by low departmentalization, little work specialization, extensive control, and little-to-no formalization or policies that govern operations. 

In simple terms, there is no multilayered management system or formal departments in a flat structure. Instead, authority is centralized with the Founder, who delegates work to staff directly. Due to the lack of management personnel, employees must report to the business owner in case of any issues. Thus, communication is informal.

A startup is an excellent example of a flat organization because, apart from the owner, there might only be one or two employees who multi-task and oversee the work completed by other employees to ensure the business achieves its goals. Such a structure commands a high degree of collaboration.