Comparison between Hierarchical and Flat Organization Structures...

Comparison between Hierarchical and Flat Organization Structures Organizations can vary in the way they are organizationally structured. The structure of an organization is very important for achieving maximum productivity, managing individual work needs and reaching of corporate goal and objectives. An organization’s structure consists of the method that an organization employs to delineate lines of communication, policies, authority and responsibilities. It determines the extent and nature of how leadership is disseminated within the organization.  It is the method to ensure effective channels of communication. There are two types of organizational structures which are usually adapted by the organizations.  Organizations either have a hierarchical or flat structure. The type of structure chosen by an organization is determined by several factors. These include size of the organization, employee’s skill, leadership style, business objectives, and technology employed etc. Hierarchical organization is also known as a ‘tall structure’. It is characterized by a large number of layers between top management and the lower ranks of the organization. It has an organization structure that follows the layout of a pyramid. In such organization, every employee in the organization, except one, usually the Chairman, MD or CEO, is subordinate to someone else within the organization. The layout has multiple entities that descend into the base of lower rank level employees, who occupy the bottom of the pyramid. Hierarchical structure is normally adopted by large organizations. A flat organization (also known as horizontal organization) structure is an organization structure in which the organization has a few or no levels of middle management between executives and staff. There may be only one layer or a few layers between the top of the management and the lower level employees. Flat structure is usually adopted by the smaller organizations. A comparison of the two types of structures are shown...