Tall Vs. Flat Organizational Structure |
Tall Vs. Flat Organizational Structure
by Dana Griffin
Tall organizational structures have more managerial levels than flat structures. Manager. image by Blue Moon
The way that a company&s structure develops often falls into a tall (vertical) structure or a flat (horizontal) structures. Tall structures are more of what we think of when we visualize an organizational chart with the CEO at the top and multiple levels of management. Flat organizational structures differ in that there are fewer levels of management and employees often have more autonomy.
Tall Organizational Structure Large, complex organizations often require a taller hierarchy. In its simplest form, a tall structure results in one long chain of command similar to the military. As an organization grows, the number of management levels increases and the structure grows taller. In a tall structure, managers form many ranks and each has a small area of control. Although tall structures have more management levels than flat structures, there is no definitive number that draws a line between the two. Flat Organizational Structure Flat structures have fewer management levels, with each level controlling a broad area or group. Flat organizations focus on empowering employees rather than adhering to the chain of command. By encouraging autonomy and self-direction, flat structures attempt to tap into employees& creative talents and to solve problems by collaboration. Tall Structure Pros And Cons The pros of tall structures lie in clarity and managerial control. The narrow span of control allows for close supervision of employees. Tall structures provide a clear, distinct layers with obvious lines of responsibility and control and a clear promotion structure. Challenges begin when a structure gets too tall. Communication begins to take too long to travel through all the levels. These communication problems hamper decision-making and hinder progress. Flat Structure Pros And Cons Flat organizations offer more opportunities for employees to excel while promoting the larger business vision. That is, there are more people at the &top& of each level. For flat structures to work, leaders must share research and information instead of hoarding it. If they can manage to be open, tolerant and even vulnerable, leaders excel in this environment. Flatter structures are flexible and better able to adapt to changes. Faster communication makes for quicker decisions, but managers may end up with a heavier workload. Instead of the military style of tall structures, flat organizations lean toward a more democratic style. The heavy managerial workload and large number of employees reporting to each boss sometimes results in confusion over roles. Bosses must be team leaders who generate ideas and help others make decisions. When too many people report to a single manager, his job becomes impossible. Employees often worry that others manipulate the system behind their backs by r in a flat organization, that means more employees distrusting higher levels of authority. Horizontal Success In a May 2010 New York Times interview with Stephen I. Sadove, chairman and chief executive of Saks Inc., shared his philosophy of organizational structures: &I & found so many examples where people were working in silos. To me it was just obvious that if people worked together you would get a better result than if you were working independently. The first 10 years of my career I found that getting people to think differently, and moving from what I call a vertical organization to a horizontal organization, was transformational.&
About the Author Dana Griffin has written for a number of guides, trade and travel periodicals since 1999. She has also been published in "The Branson Insider" newspaper. Griffin is a CPR/first-aid instructor trainer for the American Red Cross, owns a business and continues to write for publications. She received a Bachelor of Arts in English composition from Vanguard University.
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Tall and flat organizational structures refer to the structures of an organization's levels of management. A tall organization, or vertical organization, is one in which the CEO sits at the top of the chain of command, with various levels of management underneath. A flat organization, or horizontal organization, involves fewer levels of management and more employee autonomy in the decision-making process.
Several factors determine the type of structure a company chooses. The size of the company is one key measure, with many larger companies opting for the tall structure. External factors, such as an economic downturn, often result in fewer employees and more of a flat structure. Improved technology means companies don't need as many middle managers, so that results in companies removing layers from the tall structure hierarchy. Other factors include employee skills, leadership style of the owners and top management and business objectives.
Generally, the larger the company, the more complex its structure, for example, the United States military, with its many members and long chain of command. In tall structures, several layers of management come between front-line employees and upper management. Since tall organizations generally have fewer employees reporting to managers, the managers can provide greater supervision.
In comparison to tall organizational structures, flat structures have fewer levels of management and therefore a short chain of command. Flat structures tend to empower the employees more and allow them a greater sense of responsibility and autonomy. Employees in a flat structure are encouraged to work together to solve company issues.
Both types of structures have pros and cons. In contrast to tall structures, in flat structures managers tend to have more employees reporting to them. As a result managers can't always provide extensive supervision, leading employees to come up with more solutions on their own. Thus, employees benefit from more freedom however, they may get more confused as to what exactly their role in the company is. Larger companies, with their tall organizational structures, often provide employees with more direction, giving employees a greater sense of job security and understanding of what their roles are in the company.
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