A flat organization has minimal rules and monitoring – it works by hiring self-motivated people who set the bar high for themselves and work for personal satisfaction rather than the fulfillment of a role. Such organizations pride themselves on being organic, easy-going, and individualistic. Implementing policies may be challenging as no one may seem to realize the need for one, and even if they do its acceptance may be challenged and not adopted as it could be viewed as the curbing of creativity and as the introduction of bureaucracy and external regulation.
In a hierarchical organization, policies are the backbone. Yet, introducing and implementing new policies can be a huge challenge, as there needs to be “managerial buy-in” at various levels. More often than not the importance and need for a new policy may get lost in translation through the various strata of hierarchy and the process and protocol involved, and the policy may never see the light of day. However, once approved by all levels of management, implementing the policy is not much of a challenge as orders that come from upper management are taken seriously and adhered to.