Structuring Organizations

BUS-101-OL009

4. Discuss two (2) of the following issues involved in structuring organizations:

a. centralization versus decentralization of authority

b. choosing the appropriate span of control

c. tall versus flat organizational structures

d. advantages and disadvantages of departmentalization

Tall versus Flat Organizational Structure

Large, complex organizations often require a taller hierarchy. 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. This creates greater specialization and more chances for advancement, (Nickels McHugh and McHugh 2008).

Flat Organizational Structure

Flat structures have fewer management levels, with each level controlling a large area or group. Flat organizations focus on empowering employees rather than following a chain of command. By encouraging empowerment and self-direction, flat structures attempt to tap into employees’ creative talents and are more responsive to customer needs.

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 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,...