Tall vs Flat Organisational structures. Image credit Huffingtonpost.com
ZIMSEC O Level Business Studies Notes: Tall and Flat organisational structures
- Organisational structures can also, among other terms and ways, be described as either tall or flat
- This is done by looking at the layers of authority in the organisation’s hierarchy
- As well as the distance between the topmost employee at the lowest ranked employee
An example of a tall organisational structure.
- A tall organisational structure is one that has a relatively high number of levels in its hierarchy of authority
- It is more bureaucratic in nature as there are many layers of authority separating the topmost officials from the bottom most employee
- In a tall organisation there are a considerable number of middle level positions between the highest and lowest ranked employees
- Large organisations tend to have a tall structure in order to deal with the complex scope of operations
- It lends itself easily to tighter control of subordinates
- Allows specialists to be hired and employed
- Supervisors typically have a small span of control
| Advantages | Disadvantages |
|---|---|
| Smaller span of control thus aiding supervision | Bureaucratic and delayed decision making |
| Tighter Control of subordinates | Effective communication can be difficult given the large amount of layers |
| Greater room for the advancement and promotion of specialists | Higher supervision and administrative costs |
| Tighter controls can hamper innovation and lead to resentment |
A flat organisational structure
- A flat organisation structure is one that has relatively few levels in its hierarchy of authority
- In a flat most middle management are eliminated in order to allow top management to come in direct contact with shop floor employees and customers
- Managers typically have a wider span of control
- It is typically found in smaller businesses that allow top managers(usually owners and founders) to control every aspect of their business organisations
| Advantages | Disadvantages |
|---|---|
| Smaller administrative and supervisory costs | Not suitable for large/geographically spread organisations |
| Quick decision making | Few advancement and promotional opportunities |
| Quick communication as there are few layers involved in the process | Little room for the employement of specialists |
| Freedom of innovation by employees | With lax control employees may drift aimlessly |
- The business might choose to utilise both types of structures from time to time or depending on situations or switch from structure to structure depending with circumstances
To access more topics go to the O Level Business Notes page.
