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Flattening Your Organization Comes With Real Risks. Here’s What Companies Often Overlook.

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Flattening Your Organization Comes With Real Risks. Here’s What Companies Often Overlook.

Fewer management layers can mean faster decisions, but what happens to the work those managers were doing?

If you’ve ever waited days for approval on something seemingly straightforward, it’s easy to see the attraction of a flatter organization: fewer handoffs, faster decisions and more autonomy.

There’s a deeper question, though. Before removing a management layer, it is important to have an understanding of what the people in that layer do — and who will take on those tasks in their absence.

There are real repercussions that need to be considered before a management layer is removed. Managers have both tangible tasks and responsibilities, as well as the less tangible ones that go along with leadership. Both of these need to be taken into account when considering a flatter organizational structure.

Gallup’s 2026 State of the Global Workplace reports that manager engagement worldwide declined by about 29% between 2022 and 2025. That’s a huge drop in the percentage of managers who feel involved in and enthusiastic about their jobs — and it is an indicator that something is amiss.

While the research doesn’t tell us that flattening management caused this decline, it prompts us to look beyond how many people report to a manager and ask more subtle questions. Under the new structure, what do people need in terms of leadership? And will their manager have the time and skills to devote to it?

An analysis from Boston University’s Questrom School of Business explains what’s at stake. Middle managers act as connectors between senior leaders’ strategy and the people carrying it out — putting them under pressure from both sides.


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