Characteristics of Organisational Structures
Organisational Structures of a business are an arrangement that allows employees to work
effectively towards meeting aims and objectives. Businesses have different organisational structures
depending on what their different aims and objectives are. These different characteristics of an
organisational structure have different advantages and disadvantages. Most organisational
structures will be in between tall and flat (as if it were a spectrum) and might sometimes even
contain features of both with both a narrow and wide span of control present within the structure.
Tall Hierarchy (narrow span of control)
An organisational structure of a business can have a tall hierarchy. This means there are many levels
of the hierarchy and generally speaking managers will have a narrow span of control. Tall hierarchies
also have a long chain of command.
Businesses might choose to have a tall hierarchy for a number of reasons. Perhaps the most
important reason is that it allows large businesses in particular to effectively control their employees
and ensure they are contributing effectively towards the achievement of the businesses’ aims and
objectives. It also allows businesses to assign clearly defined roles to their employees so that they
know exactly what they are doing. Due to the number of layers in a hierarchy there are more layers
of management, this increased number of managers means that each manager does not have too
much responsibility and can really concentrate on achieving their narrow targets. This narrow span
of control is particularly useful when the work of subordinates is complicated and multi-faceted.
However there are also many limitations for a business organising themselves to have a tall
hierarchy. Due to the many levels of a tall hierarchy, information might be distorted. This means the
message will change or lose information as it travels up or down the hierarchy. This distortion can
occur by accident (much like a game of Chinese whispers) or could be distorted on purpose by
managers or subordinates changing or withholding information. Also with a tall hierarchy it takes the
business longer to execute decisions as a result of the time it takes for the message to travel from
the top to bottom of the hierarchy. There could also be poor motivation amongst employees who
feel as though they have no freedom to make their own decisions and rather are merely carrying out
orders from their superiors. Managers in particular might only have a very limited amount of
responsibility that can demotivate them. Finally the costs associated with a tall hierarchy are
increased as a result of the layers of management that are needed to sustain such an organisational
structure.
Flat Hierarchy (wide span of control)
An organisation can also have a flat hierarchy, this means that there are relatively few layers in the
hierarchy. Generally speaking this type of hierarchy has managers with a wider span of control. The
chain of command is also shorter than in a tall hierarchy.
Businesses might choose to have flatter structures for a number of reasons. Firstly a flatter structure
generally means that each employee has more responsibility and freedom to make decisions. This is
because their job role is not as clearly defined as it would be in a tall hierarchy. This extra
responsibility and freedom is especially important in jobs that require creativity and where the
conditions of work are not always the same. Also a flatter structure means that messages are
communicated quicker from the top of the hierarchy to the bottom and so the organisation can be
more responsive to any changes that might occur. There is also less chance for opportunity for
distortion of messages as there are less layers for that message to pass through. In a flatter
hierarchy managers often have a larger span of control, this can reduce employee costs as less
managers are required to do jobs. It also means subordinates are more involved in the decision
making process which can act as a motivational tool for them.
Flat Hierarchies however also suffer from limitations. If a manager has a wide span of control it
might mean that they have too many things to think about and their work load might be overly
intense, which could lead to fatigue and burn out. Also in a flat hierarchy, employees are monitored
less closely. This means lazy employees could get away with doing little work as they are not
checked on that often. Another limitation of a flat hierarchy is that roles might not be as clearly
defined as they are in a tall hierarchy. Managers with a wide span of control could be managing a
range of different job types and could therefore pass on responsibility to their subordinates which is
not officially part of their job role. This can lead to confusion and affect morale and productivity.