Tall organization: an organization in which the hierarchy has many levels relative
to the size of the organization.
Flat organization: an organization that has few levels in its hierarchy relative to
its size.
Figure 5.1 flat and tall organizations a tall organization has more hierarchical
levels and more managers to direct and control employees’ activities than does a
flat organization with the same number of employees.
Figure 5.3 types of managerial hierarchies
- Pyramid-like structure with decreasing numbers of managers at each level
- Bloated structure with increasing numbers of managers at each level
Problems with tall hierarchies:
- Communication problems; having too many hierarchical levels may hinder
communication. As the chain of command lengthens, communication
between managers at the top and bottom of the hierarchy takes longer.
Distortion; Information becomes distorted as it flows up and down the
hierarchy through many levels of management. Managers up and down the
hierarchy may deliberately manipulate information to promote their own
interests.
- Motivation problems; as the number of levels in the hierarchy increases,
the relative difference in the authority possessed by managers at each
level decreases, as does their area of responsibility. Flat organization
managers possess relatively more authority and responsibility than a tall
organization. More authority and responsibility motivates.
- Bureaucratic costs; managers cost money. The greater the number of
managers and hierarchical levels, the greater the bureaucratic costs. That
is, the costs associated with running and operating an organization.
Principle of minimum chain of command; an organization should choose the
minimum number of hierarchical levels consistent with its goals and the
environment in which it operates. An organization should be kept as flat as
possible and top managers should be evaluated for their ability to monitor and
control its activities with the fewest managers possible.
Span of control; the number of subordinates each manager directly managers.
Figure 5.6 the increasing complexity of a manager’s job as the span of
control increases
Three relationships six relationships
With the addition of one more subordinate, the manager has six relationships to
handle.
,
to the size of the organization.
Flat organization: an organization that has few levels in its hierarchy relative to
its size.
Figure 5.1 flat and tall organizations a tall organization has more hierarchical
levels and more managers to direct and control employees’ activities than does a
flat organization with the same number of employees.
Figure 5.3 types of managerial hierarchies
- Pyramid-like structure with decreasing numbers of managers at each level
- Bloated structure with increasing numbers of managers at each level
Problems with tall hierarchies:
- Communication problems; having too many hierarchical levels may hinder
communication. As the chain of command lengthens, communication
between managers at the top and bottom of the hierarchy takes longer.
Distortion; Information becomes distorted as it flows up and down the
hierarchy through many levels of management. Managers up and down the
hierarchy may deliberately manipulate information to promote their own
interests.
- Motivation problems; as the number of levels in the hierarchy increases,
the relative difference in the authority possessed by managers at each
level decreases, as does their area of responsibility. Flat organization
managers possess relatively more authority and responsibility than a tall
organization. More authority and responsibility motivates.
- Bureaucratic costs; managers cost money. The greater the number of
managers and hierarchical levels, the greater the bureaucratic costs. That
is, the costs associated with running and operating an organization.
Principle of minimum chain of command; an organization should choose the
minimum number of hierarchical levels consistent with its goals and the
environment in which it operates. An organization should be kept as flat as
possible and top managers should be evaluated for their ability to monitor and
control its activities with the fewest managers possible.
Span of control; the number of subordinates each manager directly managers.
Figure 5.6 the increasing complexity of a manager’s job as the span of
control increases
Three relationships six relationships
With the addition of one more subordinate, the manager has six relationships to
handle.
,
