Tall Organisation Structure in Business

A tall organisation structure, also known as a pyramid structure, is a traditional arrangement commonly found in medium and large organisations.

Hierarchy of Authority:

• Description: The structure resembles a pyramid, with decisions and instructions flowing from senior staff to the workforce and information moving back up the hierarchy.
• Responsibility levels: The position in the pyramid corresponds to an individual's level of responsibility, with higher positions indicating greater responsibility.
• Example: In a corporation, the CEO sits at the top of the pyramid, followed by executives, managers, and employees at various levels.

Clearly Defined Roles and Procedures:

• Description: Members of the organization have well-defined roles and standard procedures that dictate their behaviour at work.
• Specialisation: Specialisation of tasks is common, and organizations often have functional departments.
• Economies of Scale: Specialisation and departmentalisation enable the organization to benefit from economies of scale in its operations.
• Example: A manufacturing company might have separate departments for production, marketing, finance, and human resources, each with specific roles and responsibilities.

Criticism and Challenges:

• Description: In recent years, tall organizations have faced criticism for their limitations in responding quickly to market and consumer demands.
• Time Delays: Time delays can occur in communications within the structure and during decision-making, especially when input is required from individuals at various levels.
• Example: A retail company with a hierarchical structure may struggle to adapt to changing consumer preferences in a rapidly evolving market.

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Tall organisation-structure

Number of Layers:

Some large organizations, such as the Civil Service, Armed Services, Police, and National Health Service, may have a considerable number of layers in the pyramid, often ranging from 20 to 30 layers.

Example: Within the education sector, schools may be part of a local authority, which in turn is part of a larger governing body, like the Scottish Parliament, illustrating multiple layers in the hierarchy.

Decision-Making Examples:

Decisions in a tall organization can be categorized into different levels:

• 1- Operational decisions are made quickly at lower levels of the hierarchy.
• 2- Tactical decisions, like setting local holidays or teacher allocations, are handled by mid-level authorities.
• Strategic decisions, such as curriculum content and examination formats, are made at the highest level.
• Example: In a school (e.g., Christon Academy), daily operational decisions, like calling in substitute teachers or closing school due to weather, are made locally. Tactical decisions, such as setting school holidays, are determined by the local authority, while strategic decisions, like curriculum changes, are the purview of the national government or parliament.

Summary:

In summary, a tall organisational structure is characterised by a hierarchical arrangement, well-defined roles, and often, departmentalisation. While it offers advantages such as specialisation and economies of scale, it can also face challenges in responsiveness and decision-making speed, especially in today's dynamic business environment.