Tall organisation vs. Flat organisation Assignment Sample

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Introduction - Tall organisation vs. Flat organisation

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Overviewing why managers need to pay careful attention to organizational structure

A good organisation framework is necessary for successful leadership. Organisational structures which are compatible with the goals of the organisation, culture and marketplace norms need to be properly developed and put in place by managers. According to Peter Drucker. "Organisational design is not an issue of preference; this is crucial (Top 10 Peter Drucker Quotes, 2023). The need for this emerges from the idea because a clearly laid out framework enhances processes, communication and making decisions, which increases efficiency as well as productivity across the board. The traditional distinction among tall and flat organisational forms is becoming less evident in modern economic climate. This results into the development of hybrid organisational forms. With the goal to take benefit of the advantage of the two tall and flat kinds whilst minimising both of their errors, hybrid structures involve common features. Google is an example of renowned business that employs a hybrid organisational structure. Having multiple teams and a flat organisational layout, Google promotes creative and quick decision-making processes. The organisation retains overall coherence through having encompassing sections with a significantly taller framework at the exact same period.

Any business's organisational structure is the basis for it, influencing its values and overall efficiency. The structure of an organisation has an important effect on the manner in which work is carried out as well as how people connect within the company. Consequently, management should properly develop and uphold it for achieving success under competitive business environment. A carefully designed organisational structure assures communication, making decisions and cooperation run effectively by fitting the business's assets to its objectives. How the organisational structure impacts staff retention and fulfilment is an important consideration that leaders have to take into consideration. According to Herzberg's Two-Factor Model, work structure that involves aspects like title of position, responsibilities and managerial relationships, has an enormous effect on worker satisfaction and motivation (Bhatt, Chitranshi and Mehta 2022). A designed effectively organisational design that enables position and responsibility clarity promotes an appropriate work environment and encourages employees to contribute significant improvements to the company's goals.

Additionally, the company's versatility and capacity to respond alterations at marketplace conditions are greatly affected by its organisational layout. Organisation needs to be flexible in current fast-paced marketplace with the goal to react quickly to evolving opportunities and problems. Rapid decisions making and successful distribution of resources is rendered feasible by an adaptable structure, allowing the organisation remain ahead of other companies in its sector. Organisational structure is additionally crucial to the management of talent. Workers with an established career trajectory and an understanding of mission within the organisation are provided by an established framework. Highly qualified personnel are more inclined to dedicate themselves to a compacted when they are able to envision what the future holds for one another. Meanwhile, this understanding is critical for retaining and attracting expertise.

Discussing two different structural types

Tall or hierarchical organizational structure:

Narrow swathes of oversight and multiple tiers within management are features of tall organisational structures. Making choices power in these kinds of organisations travels downwards from the highest ranks to lower levels of management and ultimately to operational level staff. The armed services are an excellent illustration of an organisation that employs a lofty design. Since the line of authority has been clearly defined, instructions and processes are strictly enforced. Tall structures have become prevalent in a number of sectors, particularly in traditional companies, political organisations and distinguished by their various degrees of authority (Cortada, 2019). A great representation of a rising organisational structure can be observed in the financial services industry. For example, the multinational business IBM is an excellent illustration of a tall corporation (International Computer Machine). IBM is famous for having an elaborate organisational layout which reflects an ordinary tall organisation construction and includes many levels of management. With such a type of structure, decision-making authority passes from the highest-ranking leaders to middle executives and then through to the employees in charge of operations. Banks tend to have intricate structures in place, particularly large international ones. Operational objectives and orders are established by the company's highest management, which includes the president and CEO and the members of the board of governors. Hence, before reaching employees on the front lines, these instructions move via a number of levels of leadership, include the heads of departments, manager of branches and regional executives. The financial institution has the ability to preserve similarity and conformity in its daily operations due to this vertical position, which assures complete conformity to organisational regulations.

Flat organization structure: Contrary to this, flat systems of organisation feature vast areas of control and a few tiers of leadership. This approach emphasises honest interaction among workers and the management team and that in turn creates a feeling of empowerment and independence. For example, one renowned video game creator business ly Valve Corporation or Valve utilises an organisational design that is flat. Since there's not much structure at Valve, employees are free to pick assignments and work collaboratively (Valve Corporation, 2023). In the design and technological industries, where innovation and versatility are essential, flat kind of organizational structure is popular. New technology companies are one famous illustration of a flat organisational structure. Such companies frequently operate with minimal administration. The developers, makers and marketing belong to the team employees that interact together with the company's CEO and owners. This vertical organisational design fosters a culture of transparency where thoughts are freely shared and employees are provided with the autonomy to make decisions for them.

Discussing benefits/drawbacks of “tall” structures

Tall structure

Benefits:

• Effective lines of accountability that identify the roles and duties are made possible by tall structures. This transparency eliminates uncertainty and assures that workers comprehend the duties they have.
• Employee specialising in particular duties may result in expertise and efficacy in their specific duties when their existing multiple levels of leadership.
• Tall buildings offer tight oversight in industries including finance and business health where attention to procedures, safety and conformance are important (Buzan, 2011).
• Strict supervision is rendered feasible by centralised a making decision, that ensures that all activities conform to legal requirements. Tall structures give an established path for career development.
• Aiming to move up the ladder of authority might encourage workers to bring forth excellent work and progress. Worker commitment and allegiance are usually developed by this deliberate advancement.

Example: Tall organisation structures, that comprise multiple different levels of structure, have benefits but drawbacks additionally (Cortada, 2019). The global technology corporation IBM is a prime example of an enterprise with a lofty architecture.

Quote: Edgar H. Schein states, "In tall buildings, there is apparent position and advantage, obvious chains of authority, but a risk for interaction distortions as information flow up and across the hierarchical" in the book "Organisational Cultures and Management"(Schein, et.al, 2021).

Drawbacks:

• The multi-layered framework might render decisions slow and difficult. Important decisions frequently require quite a while to narrow down to the lowest possible levels. Due to this, there is delay in getting quick responses to alterations in the marketplace.
• As knowledge passes through different levels of leaders, it might get skewed; this may lead to errors and lack of interaction among employees.
• Tall buildings' multiple layers of fabric hierarchies could end up in paperwork and bureaucracy. Decision-making processes can often be delayed since concepts need to go via several approvals stages (Cottrell, 2013).
• The business ability for creativity and swiftly adapt to changing marketplace circumstances might be hindered by this structure. Individuals at the bottom can feel left out of the processes for making choices due to the extremely rigid structure.
• Their views and recommendations could not be adequately accepted by upper management, which will discourage them and render their work less rewarding.

Discussing benefits/drawbacks of “flat” structures

Flat structure

Benefits:

• Since flat structures contain fewer levels of administration, they enable agile making choices. Fast decision-making allows the business to respond rapidly to alterations in the marketplace and customer demands.
• Open channels of communication enhance creativity and imaginative thinking. A culture of creativity is promoted by workers' feeling of freedom to offer thoughts while contributing to the business's advancement.
• The versatility of hybrid constructions permits them to accommodate a wide range of business requirements.
• Administrative sections can function with unique organisational structures according to their distinctive requirements. As an instance, flat organisational frameworks might promote innovation in creative departments, yet taller hierarchies could be necessary for administrative units to have effective operations.
• Open and direct communication routes are maintained in teams or organisations that use simple frameworks. It also makes it simpler for various individuals to share ideas and knowledge, which promotes collaboration and resolving issues.
• Flat organisational frameworks minimise paperwork and encourage innovation and flexibility. Workers have the ability to test, take opportunities, and carry out imaginative ideas without being limited by unnecessary managerial clearances whenever choices are made rapidly and when open interaction between teammates.
• Professionals with flat organisational structures have more independence. They feel empowered to take responsibility for their own initiatives and endeavours that increases their feelings of satisfaction regarding their work and improves happiness at work.
• Empowering often ends in higher degrees of productivity and imaginative thinking. Flat organisational frameworks minimise paperwork and encourage innovation and flexibility.
• Workers have the ability to test, take opportunities, and carry out imaginative ideas without being limited by unnecessary managerial clearances whenever choices are made rapidly and when open interaction between teammates is. Professionals with flat organisational structures have more independence. They feel empowered to take responsibility for their own initiatives and endeavours, which increases their feelings of satisfaction regarding their work and improves happiness at work. Empowering often ends in higher degrees of productivity and imaginative thinking.

Example: The renowned video game creator Valve Corp. is a perfect example of an enterprise with a flat organisational layout.

Quote: In the words of the staff member handbook at the Valve Company, "Nobody ‘reports to' anyone else, which means it has no managers" ((Valve Corporation, 2023). It will be up to them to guide the company towards potential while steering it away from risks."

Drawbacks:

• Maintaining supervision of an array of activities can be challenging in an organisation with less kinds of management. It could be challenging to preserve uniformity in guidelines and processes among different divisions.
• Vast areas of authority could contribute to manager fatigue in flat organisational structures. It may be hard to handle management responsibilities while providing workers the support they require. Keeping a hybrid system calls for careful balance.
• Attempting to reconcile conflicting interactions and choice-making procedures may contribute to complex. A shift in organisational norms must occur when establishing a hybrid framework.
• Within a single organisation, workers must adjust different systems of reporting, that, if not addressed effectively, may lead to uncertainty and opposition.
• The independence provided by flat systems can sometimes result in a dearth of supervision (Gallagher, 2013). It could be challenging to preserve high standards of excellence across numerous tasks and individuals due to the lack of sufficient supervision.
• Disputes over making decisions power and duties may occur in the dearth of an obvious power hierarchy framework. Good interactions as well as dispute resolution skills amongst employees are essential for solving these conflicts.
• The limited opportunity for vertically advancement in career in flat organisation models constitutes one among their major limitations. Unhappy staff members and a shortage of drive can arise from this, especially for ambitious individuals wanting for success in their respective fields. Professionals in flat companies often have to take on an assortment of jobs and headwear.
• This could contribute to position unknowns even while it may boost the development of skills. It may be unclear who is liable for which tasks while when there are overlapping responsibilities and ambiguous roles in the job. The confusion may contribute to disagreements, ineffectiveness and an overall decrease overall production.
• Effective resource allocation can prove challenging for flat properties. Managing duties, expenditures, and project priorities can be difficult when there is a little oversight by management. Incorrect allocation of assets, unequal allocation of work, and delay in enterprises may ensue from this.
• Employees in flat organisation frequently manage an assortment of duties. This could end in an absence of specialisation nevertheless it generates an employee that is flexible. Particular industries demand specialised skills and expertise, and an absence of specialisation may lower the standard of work performed which can decrease the capacity of a company to stand out in the market place.

Conclusion

By concluding the report a key aspect that determines an organization's sustainability is its organisational structure. Flat properties promote innovation & mobility while tall ones offer distinct hierarchies and expertise. It is essential for determining the perfect equilibrium, potentially employing vehicles that are hybrids. With the goal to encourage growth, efficiency & creativity executives must deliberately manipulate these frameworks and align them to the goals of the organisation.

References

Books and Journals

• Bhatt, N., Chitranshi, J. and Mehta, M., 2022. Testing Herzberg's two factor theory on millennials. Cardiometry, (22), pp.231-236.
• Buzan, T. 2011, The Buzan Study Skills Handbook. BBC Publications/Pearson: Essex.
• Cortada, J.W., 2019. IBM: The rise and fall and reinvention of a global icon. MIT Press.
• Cottrell, S. 2013, The Study Skills Handbook. 4th ed., Basingstoke: Palgrave Macmillan.
• Gallagher, K. 2013, Skills Development for Business and Management Students. 2nd ed., OUP: Oxford.
• Schein, E.H., Turner, R.A., Schein, P.A. and Hayes, T.L., 2021. A long and beautiful conversation with Edgar Schein: His journey through seven decades of social psychology, anthropology, and organizational life.

Online

• Top 10 Peter Drucker Quotes, 2023. Online. Available through: https://www.brainyquote.com/lists/authors/top-10-peter-drucker-quotes
• Valve Corporation, 2023. Online. Available through: https://www.glassdoor.co.in/Overview/Working-at-Valve-Corporation-EI_IE24849.11,28.htm