The type of organizational structure you select as a corporate leader may affect your achievement of organizational objectives. There are two kinds of organizational structure, tall vs flat organizational structures.

If you are starting your journey then you can start from the flat structure because in this hierarchy the management of employees is easier as compared to tall structure for a newbie. But it totally depends on your managerial capacity and talent.

You can choose whether organizational structure is best for your firm if you work in management or operations by knowing the Advantages and Disadvantages of both tall and flat organizations.

In this article, we define the basic concept of flat & tall organizational structure and the 4 key differences between them for your better understanding. Then we cover the Advantages & Disadvantages of both models and which model will be suitable for you and how you can choose perfect option for your business by booking a 1:1 Free Consultation from our Talent management & HR Consulting Experts 🙂

What is a Flat Hierarchy or Horizontal Organizational Structure?

A flat hierarchy or flat horizontal structure has fewer management tiers, startups and smaller businesses generally choose it. This means that a single supervisor is responsible for many, if not all, of the staff. There is not truth hierarchy, and most workers get along just fine. 

Employees in this system collaborate to complete short-term tasks and determine the future course of the business. It places an extreme value on teamwork. 

There are usually less defined positions and a high level of employee autonomy in flat businesses. The supervisor generally maintains the final say over business concerns and has considerable power within the corporation.

What is a Vertical Hierarchical Structure?

The most common form of organizational structure is vertical hierarchy. It is typified by a pyramid-like structure that integrates management levels ranging from low to high. Usually, older businesses use it.  

At the top is the CEO, while each manager oversees and assigns work to a select group of employees at lower levels. The senior managers are in charge of long-term planning and more prominent decisions. 

The managers at lower levels typically oversee daily operations. As a result, personnel at higher levels are also able to delegate tasks to subordinates and hold them responsible for their work.

Understand the 4 Key Differences Between Tall and Flat Structures

The following are some ways that tall and flat structures of organization differ:

Standard Type of Business

The flat business structure is the most common organizational style used by small business owners.  Business owners that use flat organizational structures are better able to communicate, stick to a tight budget, and uphold distinctive criteria like lax management. 

Large organization owners usually adopt tall organizational structures. A tall organizational structure allows for more scrutiny and stricter compliance standards because each element of the management process can be handled by several people. To manage assets larger companies with several departments would need a tall organizational structure.

Hierarchical Differences

Flat organizational structures feature smaller hierarchical configurations than tall organizational structures. There is less monitoring and a shorter chain of command within flat organizations because there are fewer supervisors to help with business concerns. Junior employees may be able to exert more influence over their jobs because they may have up to three levels of authority.

Tall organizational structures have a clear hierarchy more workers, and inflexible job duties. They may hold three or more tiers of authority within the hierarchy including managers, employees, and supervisors. The hierarchical structure of the company is important to its functioning and usually has a higher number of managers.

Customer Communication

Flat organizational structures may communicate with customers more than tall organizations do. This is because short organizations give more chances to customers to talk than others. The interaction with clients may be handled by supervisors or by junior staff. 

Communication is the first thing in the business organization. When you covey your talk to clients to handle them. Because in an organization communication is a very important thing to grow. 

Management’s Stiffness

Because a flat organizational structure has management personnel. It has less control over policies, procedures, and processes. Junior team members may be able to make decisions on their own in a more laid-back work atmosphere as a result. 

The large workforce needed to create a tall company, including managers, supervisors, and workers.  It tends to make for more stringent management practices. Their workplace can be a little more regimented with clear expectations for each employee from their boss.

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Also Read: New era demands modern leadership skills to develop and to sustain a successfull business. Here is a complete article with deep research that what is the role of critical thinking skills in modern leadership and how to develop it?

Which Hierarchical Structure Do Employees Prefer: Tall or Flat Organization Structures? 

Every person has their own choice about organization structure. Now we tell you in an organization which structure employees prefer most, 

Advantages of Tall Organizational Structure:

• Jobs are more transparent in a tall structure, goals are clearer, and prices are easier to control.

• There is a very clear routine in the management structure. Every level of manager is in charge of a small group of workers, and each worker’s responsibilities are well-defined.

• Every level of manager has different responsibilities of their own.

• With each manager overseeing a smaller group of workers all the workers are under more constant observation.

• When a team member earns a raise they move up to the next band. 

• When they run out of bands the only way they can offer them the services they deserve is to suggest them to management.

Disadvantages of Tall Organizational Structure:

• Employees depend on information from their immediate manager.

• They are less independent and accountable. 

• The process of making decisions usually moves slowly because different management levels must give their permission.

• It must be done to use various management levels for communication. 

• When management tiers cannot communicate with one another. 

• When choices made at the top levels are kept a secret, staff members. They rely on department managers and team leaders could feel abandoned.

• The organization needs to be more sensitive to change and more flexible but it fails to be.

•  When there are problems solving them can take some time. 

• Some people are not appropriate for management no matter the amount that they should be paid more. They may choose not to be. 

Advantages of Flat or Horizontal Organizational Structure:

There are numerous benefits to a flat organizational structure. Here are some of the advantages:

• A flat organizational structure saves money because it requires fewer personnel to complete tasks. After all, there are minimum management levels.

• Additional lines of communication between managers and staff.

• Because there are fewer tiers staff members can report to managers directly and provide fresh ideas that speed up the process of making decisions.

• Every task that needs to be done has complete control over all employees including the management.
  
• Because they are in close range of their clients, managers, and staff can react swiftly to any changes or requests from them.

Disadvantages of Flat or Horizontal Organizational Structure:

A flat organizational structure has certain drawbacks in addition to benefits. The following lists a few drawbacks:

• An organization’s ability to grow may be limited in some way by a flat organizational structure.

• Workers may be confused while reporting if they have more than two bosses. It is possible that they are perplexed about which of the bosses to report to.

• There may be a struggle for control over who has the most influence over the workforce when there are multiple bosses.

• Flat organizational structures are typically seen in tiny organizations, such as cooperatives, partnerships, and certain private limited businesses.

Here is a detailed guide on Advantages and Disadvantages of Flat Organizational Structure.

Which Organizational Type Is Best for Your Company? Vertical vs. Flat Hierarchies 

The ideal organizational structure may fall halfway between tall and flat hierarchies. But it might not work for anyone because it depends on every person personal capacity to manage work load. There are advantages and disadvantages to both vertical and horizontal hierarchical arrangements.

It can be beneficial to talk with an experienced Talent Management & HR Consultant before determining what is ideal for your organization. Book your slot of Free Consultaion now to get best consulting for your organization from our Top-Notch Consulting Expert!

Conclusion

To conclude this guide, we covered all about the hierarchy of organization structures.  A flat organizational structure enables effective communication, while a tall structure offers more growth opportunities. What suits you? This can be determined after proper consultation.

You can take your decision only by reading this article also. These structures are a very necessary thing for business development. Every leader has to learn about these hierarchy structures. So it helps them to improve their self.