Company Structure
The organization structure is basically the form of an organization that is evident in the way divisions, departments, functions, and human resources link together and interact with each other and reveal vertical operational responsibilities, and horizontal linkages. Organizations are structured in a variety of ways, dependant on their objectives and culture.
The structure of an organization will determine the manner in which it operates and it's performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees. An organization may have any of the two organization structure, either Tall or Flat. The tall structure refer to narrow span of control and the other one refer to wide span of control and decentralized decision making.
Tall/Hierarchical Structure:
There is a "long chain of command" running from the top of the organization eg. Chief Executive down to the bottom of the organization eg shop floor worker.
Features of Tall Structure:
? Narrow Span of control
? Top-down decision making and centralized
? In-house training
? Wages are given to employees
? Single skills needed and highly specialized
? Quantity is important than quality
Flat Structure:
In contrast to a tall organisation, a flat organisation will have relatively few layers or just one layer of management. This means that the "Chain of Command" from top to bottom is short and the "span of control is wide". Due to the small number of management layers, flat organisations are often small organisations.
Features of Flat Structure: