Tall organization
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A tall organization is a type of organizational structure in which there are multiple levels of hierarchy and decision-making authority. Tall organizations are characterized by having a larger number of layers between the top and bottom of the organization than in other types of organizational structures such as flat organizations. This type of organization typically has a wide hierarchy with a clear chain of command, allowing for more efficient decision-making. Additionally, the large number of layers can provide more opportunities for specialization and a greater degree of control over operations. The main benefits of a tall organization are increased specialization, better control over operations, and more efficient decision-making.
The main drawbacks of tall organizations are slower decision-making, higher overhead costs, and difficulty in communicating across the organization. Tall organizations also tend to have a more rigid chain of command, which can lead to less flexibility and less innovation. Additionally, tall organizations are often more hierarchical, which can lead to a lack of motivation and engagement from employees.
Overall, a tall organization is a type of organizational structure that is characterized by multiple levels of decision-making authority and a large number of layers between the top and bottom of the organization. The primary benefits of this type of organizational structure are increased specialization, better control over operations, and more efficient decision-making. However, there can also be drawbacks such as slower decision-making, higher overhead costs, and difficulty in communicating across the organization.
Example of Tall organization
A tall organization can be seen in many large corporations. For example, a typical corporate organizational structure is as follows:
- Board of Directors: The Board of Directors are the highest-level decision-makers in a corporation and they have the ultimate responsibility for the performance of the business.
- Executive Officers: Executive Officers are responsible for the day-to-day operations of the company and they have the authority to make decisions that are within their scope of authority.
- Senior Management: Senior Management is responsible for overseeing the various departments within the organization and they have the authority to make decisions that are within their scope of authority.
- Middle Management: Middle Management is responsible for managing the activities of the various departments and they have the authority to make decisions that are within their scope of authority.
- Supervisors: Supervisors are responsible for managing the activities of the various teams and they have the authority to make decisions that are within their scope of authority.
- Employees: Employees are responsible for carrying out the tasks that are assigned to them.
This type of hierarchical structure is typical of a tall organization. The Board of Directors is at the top, with the Executive Officers and Senior Management beneath them, followed by Middle Management, Supervisors, and Employees. This type of organizational structure allows for a clear chain of command and specialization, while also providing opportunities for control over operations and efficient decision-making. However, this type of organizational structure can also lead to slower decision-making, higher overhead costs, and difficulty in communicating across the organization.
In conclusion, a tall organization is a type of organizational structure that is characterized by multiple levels of decision-making authority and a large number of layers between the top and bottom of the organization. This type of organizational structure can provide increased specialization, better control over operations, and more efficient decision-making, however there are also drawbacks such as slower decision-making, higher overhead costs, and difficulty in communication.
When to use Tall organization
A tall organization is typically used when the organization is complex and needs specialized roles within the organization. Additionally, a tall organization can be beneficial when the organization is large and needs to be broken into multiple levels of decision-making authority. This type of organizational structure can also be beneficial when the organization needs to have better control over operations and a more efficient decision-making process.
When not to use Tall Organization
A tall organization may not be beneficial in certain cases, such as when the organization is small and does not need multiple levels of decision-making authority. Additionally, a tall organization may not be beneficial when the organization needs to be flexible and have a high level of innovation. Additionally, a tall organization can be detrimental to employee motivation and engagement due to its hierarchical nature.
Types of Tall organization
Tall organizations can be further classified into three types: functional, divisional, or matrix.
- Functional organizations are characterized by the grouping of personnel and activities into departments or divisions based on their function. This type of organization is characterized by a high degree of specialization, with each department dedicated to performing a specific task or set of tasks. This type of organization typically has a clear chain of command and is well-suited for large organizations with complex operations.
- Divisional organizations are characterized by a division of labor based on product, service, customer, or geographic area. This type of organization typically has less specialization than functional organizations, but can be better suited for organizations with multiple product lines or services. Divisional organizations also tend to be more flexible and can be more responsive to changes in the market.
- Matrix organizations are characterized by a combination of functional and divisional structures. This type of organization typically has a dual chain of command and allows for a higher degree of specialization and flexibility. Matrix organizations are best suited for organizations with multiple product lines or services and a need for rapid changes in operations.
Advantages of Tall organization
The main advantages of a tall organization are:
- Increased specialization: By having a large number of layers between the top and bottom of the organization, there is more opportunity for specialization, which can lead to more efficient and effective operations.
- Better control over operations: With a clear chain of command, there is greater control over operations, which can lead to smoother and more efficient operations.
- More efficient decision-making: With a larger hierarchy, decisions can be made more quickly and efficiently since there are more levels of decision-making authority.
Limitations of Tall organization
Tall organizations have some key limitations that should be taken into account when deciding if this type of organizational structure is right for a particular business. These limitations include:
- Slower decision-making: The larger number of layers in a tall organization can lead to slower decision-making as decisions have to be approved by multiple people.
- Higher overhead costs: The additional layers in a tall organization can lead to higher overhead costs due to an increase in staffing and administrative costs.
- Difficulty in communication: The larger number of layers in a tall organization can lead to difficulty in communicating across the organization and can lead to a slower response time for important messages.
- Lack of flexibility: The rigid chain of command in a tall organization can lead to less flexibility and less innovation.
- Lack of motivation: The hierarchical nature of tall organizations can lead to a lack of motivation and engagement from employees.
In addition to tall organizations, there are other types of organizational structures that have their own advantages and disadvantages. These include flat organizations, matrix organizations, and network organizations.
- Flat organizations are characterized by having few layers of management and less bureaucracy. This type of organization typically has fewer rules and regulations, allowing for more flexibility and creativity. Flat organizations are also more cost-effective, as there are fewer management layers. However, the lack of structure can lead to inefficiencies, and it can be difficult for employees to be accountable for their actions.
- Matrix organizations are characterized by having multiple lines of authority and reporting. This type of organization typically has employees that are assigned to multiple departments, allowing for cross-functional collaboration. Matrix organizations can be very effective in complex and dynamic environments and can provide more opportunities for specialization. However, they can also lead to conflict between departments and a lack of accountability.
- Network organizations are characterized by having multiple organizations or entities that work together to achieve a common goal. This type of organization typically involves collaboration between multiple groups, allowing for increased specialization and increased efficiency. Network organizations can be very effective for complex projects, but they can also be difficult to manage and lack oversight.
Overall, there are various organizational structures available for businesses to use, each with their own advantages and disadvantages. Tall organizations are characterized by having a large number of layers between the top and bottom of the organization and can provide increased specialization and better control over operations. However, there can also be drawbacks such as slower decision-making and higher overhead costs. Other organizational structures such as flat, matrix, and network organizations each have their own advantages and disadvantages and should be evaluated based on the particular needs of the business.
Suggested literature
- Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016). Organizational structure. Procedia-Social and Behavioral Sciences, 230, 455-462.
