Tall And Flat Organisational Structures From A Management Perspective

1008 Words Nov 29th, 2014 5 Pages
Introduction

This essay will discuss tall and flat organisational structures from a management perspective. The emphasis will be posed on the importance of hierarchy, different structural types, their benefits and drawbacks.

What is the organisational structure and why is it important

Organisational structure is a body of management, which defines how information flows from level to level within the company. The structure gives the employees a clear idea about who has the responsibility for what and how different roles relate to each other. It improves communication and increases productivity. According to Payne (2006), the organisation design and structure have a profound impact on the performance of firms. For this reason, every manager should pay a careful attention when creating a hierarchy chart. Well designed structure is a key element to a successful business.
Types of structure
Functional
In a functional structure, individuals working on same task or having identical objectives are grouped together. For example, there might be separate departments for sales, purchases and accounting.
Each department is supervised by an experienced person who is able to understand and review employees ' work. The definite advantage of functional structure is, that a critical mass of skills development helps to sustain functional expertise and support its goal achievement (Duncan 1979).
On the other side, coordination problems and slow speed of response to environmental change…

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