SMU Professor of Corporate Communication Ong Siow Heng opined in this commentary that a very hierarchical structure in an SME may have a negative effect by causing rivalry and hindering cooperation between different teams or departments. He said that a flatter organisation structure means there are fewer levels of middle management. Besides savings in operational costs, the main advantage is that having fewer levels of bureaucracy can improve coordination amongst the staff. This could lead to more efficient response to client needs. He advised each SME has to decide how to function with elements of equality so as to encourage individual strengths while still achieving organisational goals.