Flat organization structures are the ones that there is no bureaucracy in that employees report directly to one manger. This means that there is no long hierarchy of management. This system is advantageous in several ways. It is cheaper since the top management is paid better than the other employees. Considering that, there are few people in the management positions, then it means less cash is used in payment of these people.
In a flat organization, communication between the employees and the management is very easy. Employees therefore have the ability to consult whenever necessary hence, the activities in such an organization are simple. It is important to appreciate that decision making in such organization is simple. Considering that, employees are also involved in such a system, proper decisions are made since the management is in a position to consider the ideas of the other employees.
Tall organizations are those that have several management layers. The disadvantage with these systems is that they are expensive. This is because the large amount of people in managerial positions need to be highly compensated hence more funds are spent on salaries. Secondly, decision making in these organizations are slow and ineffective. This is because the top management makes decisions that are imposed to the juniors. These decisions result to conflicts hence it takes time to make the other employees to adopt these decisions.
Tall organizations hinder the innovation process. This is because the employees believe that the top management are superior and have to make various decisions and come up with new ideas. This makes low level employees to relax hence hindering innovation.
In conclusion, flat organizations are more advantageous in many ways. However, the size of the organization determines whether a flat or tall organizational structure is the best.
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