Does a flat structure make business sense in organisations

Many organisations with a flat structure have reaped the benefits of such a structure. However, one size never fits all. In some organisations this structure may be the ultimate solution, but in others this could be doom. So the type of business dictates what kind of structure is best suited to it operation. However, having a structure that adopts both hierarchal and flat structure will help businesses capitalise on the benefits of both the models.
Decision making is one of the key elements that decide the course of a organisation. Especially, the ones that have a high deal of risk associated with them. For example decisions like downsizing of the organisation, restructuring, mergers and acquisitions have a enormous effect on the direction that a organisation is taking. So, naturally there is going to be opposing views in such cases. This is when responsibility and accountability comes into play. A "flat" organisational structure could seriously jeopardize the organisation interest in such time. However a mixed structure would welcome all possible views and ideas and take the best way forward.
Some industries such as Information technology and Investment banking need constant interaction between managers and subordinates. When there is high amount dependence on the information provided by the subordinates, a mix of hierarchical and flat structure could be much better than any other structure. Ideas can be exchanged more freely and the best way forward can be decided by using everyone’s knowledge. However in case there is a disagreement on and decision, the hierarchy can solve the problem.
One of the major problems in organisation is stress. Stress is one of the primary reasons for burnouts and feuds in organisations. So reducing these may lead to better results and performance. Once way to achieve these are to have a mixed flat organisation structure. This encourages better collegiality and corporation within the organisation.
Different organisations have different needs. Even though it may not be possible for every organisations to adopt a mixed structure, having an environment that promotes collegiality and cooperation is definitely going to help.