Tall Vs. Flat Organizational Structure
Organizations use organizational structures to define their hierarchical frameworks and work flows. There are two main forms of organizational structures that companies use--the flat, or horizontal, one and the tall, or vertical, one. The former is usually used by small companies and the latter is used by large corporations.
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Features
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Large corporations use the tall organizational structure. The decision-making powers all rest with the top management. The decision making and authority are all centralized and all the strategic functions are segregated into departments.
Flat organization structure is generally adopted by small firms. Here the management trusts and respects the judgement and decision-making capabilities of its employees. The employees directly report to the owners of the business. Hotels, schools and spas use this structure.
Benefits
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The main benefit with using the tall organizational structure is that there is a clear-cut demarcation of the authority and responsibility diagrams in the organization. Every individual employee knows of all the individuals who report to him and to whom he reports.
The flat structure is very beneficial in completely eliminating bureaucracy and middlemen. Since the employees are vested with decision-making abilities, they tend to be motivated and work promptly.
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Considerations
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Every organization must choose its structure after carefully scrutiny and evaluation of several factors. These are factors such as the scale and magnitude of the company's operations, its products, customers and employees.
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References
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