Tall Organizational Structure Advantages And Disadvantages – What it is: A high organizational structure, in short, a high structure, is an organizational structure with many levels of management. It is a pyramid structure with many middle managers. The chain of command is long. Therefore, communication and decision-making must go through many layers of management. We see this structure in large companies; Tesco is a good example. Also called hierarchical structure or pyramid structure.
Large companies have complex operations. Organizations are large and need a high level of structure to be effective. They need more managers to oversee and control day-to-day operations. They usually have fewer employees reporting to individual managers. Therefore, managers can provide more oversight.
Tall Organizational Structure Advantages And Disadvantages
A more distributed management function is an advantage of a tall structure. It also allows greater control over the business. However, decision-making and communication are often slow because they must flow through many levels of management. In addition, there is less opportunity for delegation and autonomy at lower levels, which can reduce job satisfaction.
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High organizational structures have many hierarchical levels and involve a long chain of command. For example, a management position within a company may include vice president, senior manager, manager, assistant manager, and supervisor. The supervisor reports to the assistant manager, who then reports to the manager.
When we draw these positions on the organizational chart, a pyramid is formed. Top managers have multiple middle managers as subordinates, each of whom supervises several lower-level managers.
The flat frame contrasts with the tall frame. It involves fewer management layers. For example, a company may not include senior manager and assistant positions. Thus, its structure includes only vice presidents, managers and supervisors. Thus, the supervisor will be responsible to the manager, who will answer to the vice president.
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Because it involves fewer layers of management, decision-making and communication will be faster than tall structures. Also, managers have a wide range of control. They have many subordinates to look after. Therefore, their load is greater than in tall structures. Finally, they are likely to give subordinates more delegation and autonomy to organize and make decisions about their area of work.
So is a flat structure better than a tall one? Not necessary. The size of the organization is one of the factors that we have to take into account.
Large organizations tend to be more complex and involve many people to supervise. When managers supervise many subordinates, not only does their workload become more complex. However, it also weakens control over the organization. For example, the manager is careless. And employees can take personal initiatives without the manager’s approval.
Types Of Organizational Structure And Their Pros And Cons
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Simply put, the flat structure of large companies makes organizations ineffective. This is because they are not well organized to achieve goals, which makes it difficult to seek growth.
Companies with a high organizational structure have more control over their operations. Each management layer must supervise some subordinates. Therefore, managers can give more guidance to subordinates. In some cases, it gives subordinates a sense of security by reducing their ability to make mistakes while doing the job. This way you reduce the chances of being fined.
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So tighter supervision and control is useful when a company has new people. They may be less skilled and take a long time to adapt. Thus, companies can encourage managers to guide and direct them to be efficient in their work. This is the reason why most factories and other businesses that employ low-skilled workers prefer tall structures.
Roles and responsibilities within the organization are distributed across multiple managerial layers. Companies define their roles and powers separately. This reduces the burden of decision-making on top management.
Furthermore, division reduces confusion in decision-making or responsibilities. For example, the company clarifies who is authorized to make certain decisions. Subordinates also understand to whom they are responsible and to whom they answer.
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The company determines the job description for each position. As a result, this leads to specialization of work. Therefore, overlapping jobs or multiple roles within the company are less likely to occur.
In addition, specialization allows employees to become more skilled in their specific fields. Therefore, they can be more productive by learning by doing or following a specific training program.
Companies have multiple levels of management, which reflects more opportunities for advancement. Employees see many opportunities to achieve higher careers. Therefore, those who are career oriented become more motivated.
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A clear career path also makes it easier for companies to design appropriate training and development programs. Finally, the management of your human resources has become better planned.
Managers supervise fewer subordinates. Thus, they can establish a more personal relationship with their subordinates. Finally, they can provide more support for their subordinates (and their unit) to succeed.
And it is an ideal state in which managers encourage subordinates to succeed as a way to reach a higher position. However, reality often doesn’t work that way.
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A high structure allows greater control over the organization. But it also comes with some drawbacks. Cost is the first disadvantage. Companies have to hire more middle managers, which is often expensive. As a result, they have to spend a lot of money to pay salaries and benefits, which increase with higher levels.
Every decision and communication must go through many layers of management. For example, messages must travel through a long chain to decide when a problem occurs at lower layers. As a result, decision-making and response are slower due to the longer process.
Likewise, once the top manager makes a decision, instructions must go through the same layers to the lowest level for implementation. That’s why the decision came too late. And the problem may have gotten worse.
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All this makes companies less flexible in responding to changes in the business environment. As a result, as markets become more competitive, it could be in serious danger. Their competitiveness is destroyed because their organizations are slow to adapt.
However, sometimes their manager is not as good as they expected. So instead of supporting and empowering them, managers can take a stricter approach with close monitoring and control.
As a result, this could cause problems. Employees are under stress and have low job satisfaction. What they do is always closely watched. Finally, they have less desire to work.
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Managers have fewer subordinates. Therefore, unlike flat structures, they are likely to give subordinates less delegation and autonomy. As a result, subordinates do not have the freedom to organize and control their work.
Managers are more likely to control and closely monitor their subordinates than to trust and empower their subordinates. This is because they want subordinates to be more obedient to their orders.
Low control and flexibility make it difficult for employees to develop and realize their ideas. They just wait for orders and do as they are told.
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As a result, it is difficult for subordinates to be more creative and show their best skills. Less creativity can lead to less innovation within the company.
Messages must pass through several levels of administrators. This raises two problems. First, the communication flow is longer. Therefore, the message takes more time to reach the desired person.
Second, the message is distorted. As you go through the layers of the communication chain, information is more likely to be reduced. For example, unfavorable information may not reach senior managers in certain cases. Because of this, communication becomes less effective because it takes a long time and distorts the message.
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