Human resources and organisational structures - OCRDifferent organisational structures

An organisational structure is how a business organises its staff to represent the different layers of management. This information can be displayed in the form of a chart. There are two main types of organisational structure used in businesses – hierarchical (or tall) and flat.

Tall structure

A tall structure is sometimes referred to as a hierarchical organisational structure. It has many layers of management, and businesses with this structure often use a ‘top-down’ approach. In a top-down approach, there is clear accountability, which means that it is clear who is responsible for which tasks. This structure requires a significant number of middle managers, which can result in managers at the top of the structure being quite remote from the staff at the bottom of the structure.

Flat structure

A flat structure is an organisational structure with only a few layers of management. In a flat structure, decisions can be made more quickly because there are fewer managers to consult. Smaller businesses or those adopting a more modern approach to management commonly use flat organisational structures.