There are two main types of organisational structure used in businesses – hierarchical (or tall) and horizontal (or flat). Benefits or advantages of a flat organisation structure are as follows: Flat Organisation is less costly because it has only few managers. The flat organizational structure eliminates middle management and adopts a more casual, people-powered approach to running a business. In a hierarchical structure, managers will have a narrow span of control and a relatively small number of subordinates or staff. management levels) decreases the span of control. The fewer individuals who have to be consulted for a decision, the quicker it is to be made, making a flat organizational structure really beneficial. Answer (1 of 2): There are various advantages of tall organizations. Every structure has certain challenges that must be met, but when these negatives are proactively approached, their impact to the business and each worker can be effectively minimized. 1. 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. Flat structure is also known as horizontal structure. Why have a flat organizational structure? Advantages of tall and flat structures Organisational cultures. Formal organization refers to the organization structure which is designed and prescribed by the management... What Is The Ad Vantages And Disadvantages Of International Organization? The Difference Between Tall & Flat Organizational Structure. The growth can be in the for… Do You Think $175.00/month Is To Much To Pay In Child Support For One Child? Flat organizational structures can only last so long. University of California, Berkeley. What Are The Advantages And Disadvantages Of Functional, Matrix And Divisional Organisational Structures? The advantages of tall organizational structures are more opportunities for advancement and more specialized managers; the disadvantages are higher costs and reduced empowerment. The difference between tall and flat organizational structures is the layers of management. It requires fewer hoops. In a flat structure, managers have a wide span of control with more subordinates, and there is usually a short chain of command. 1. As it is believed that, the employees lack the levels of knowledge and proper experience to take the correct decisions for the … List of Pros of Flat Organizational Structure. An organisational structure is how a business organises its staff to represent the different layers of management. Some related articles on flat organisation structure: Tall organisation structure. Explain what the flat organizational structure is and how it differs from tall organizational structure Summarize the advantages and disadvantages of flat organizational structures … It is designed to minimize bureaucracy. Instead, the employee must contact his manager regarding the issue before taking action. Organizational structures play a key role in effective communication and decision-making. Organisational structures show who each employee reports to in their job. Lyman W. Porter. or staff. In contrast to the tall hierarchical structure, a flat organizational structure is characterized by relatively few layers or just one layer of management. Employees are not supervised by many levels of management. Sign in, choose your GCSE subjects and see content that's tailored for you. Discuss the Flat Organization As It Relates to the Organizational Structure. The lower number of employees who are focused helps in ensuring that the business is able to manage without complicating things for the organization. Firstly, in tall organizational structure there is a close supervisory control because of the low span of managers. Horizontal (flat) structures and hierarchical (tall) structures, is how a business organises its staff to represent the different layers of management. Secondly, it is a more authoritative structure therefore, the roles and responsibilities are clearly defined. Areas of the business are closely managed, Managers have tight control over employees, There is slow communication due to a long chain of command, Employees may be demotivated due to lack of autonomy, Organisational changes can be slow to implement, A horizontal or ‘flat' structure is an organisational structure with only a few layers of management. There are various advantages of tall organizations. The communication pathway when using this structure is short and often results in quicker, more effective communication. How Do You Get Over A Guy That You Still Love? 3.4 Disadvantages of Flat Organisational Structure. "Tall" or "vertical" describes organizational structures with several hierarchical layers. The official reporting relationships are clearly known to … Tall organizational structures also offer disadvantages compared to other types of structures. Besides the advantages, flat organisational structure has some disadvantages as well. Flat organisational structure is a structure where there are no levels or very few levels between managers and staff. When the businesses start growing with a lot of additions however there is a need to adopt a formal structure. The communication pathway within a tall structure is usually long, because communication has to pass through each element in the chain of command. The Disadvantages of Tall Types of Organizational Structure. 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