FLAT STRUCTURE IS BETTER THAN TALL

ORGANIZATIONAL STRUCTURE FOR BUSINESS

Tall Flat
PRESENTED BY

Afikur Rahman Azam Khan Enamul Sabir Kazi Siyam Taushin

 Description of the Business

 Walton is a conglomerate based in Dhaka, Bangladesh

 Walton Group of industries was founded by S.M Nurul Alam Rezvi in 1977 as
a trading company.

 Walton is the first Bangladeshi company which produce lots of own countries
products, and quality goods at a lower price than others company product.

 Walton is one of the highest taxpayer company in Bangladesh and has a

strong impact on the country’s economy.
Professional Research on Walton
Group

Organizational Structure of Walton Group

 Barrier and Way of Overcome

 Barriers

 A tall organizational structure has multiple layers of management

between the executives and front-line employees.
 The long chain of command runs from the top down.
 The larger hierarchy grows more complex movement of
information between the layers.

 Way of Overcome

 General Electric in July 2002 announced that it was breaking its

financial subsidiary – GE Capital – into four units. Simultaneously,
it ditched the chairmanship of GE Capital, saying the managers of
the four newly independent units would report directly to Jeff
Immelt, the parent company’s chairman. “The reason for doing
this is simple,” Immelt said at the time. “I want more contact with
the financial services teams.”
 Methodology

 Disadvantages of Tall Organizational Structure

• The freedom and responsibility of employees (subordinates) is

restricted.
• Decision making could be slowed down as approval may be needed by
each of the layers of authority
• Communication has to take place through many layers of
management
• High management costs because managers are generally paid more
than subordinate.

 Advantages of Flat Organizational Structure

• Greater Communication between management and workers

• Better team spirit as fewer management layers increase interaction
between employees on different levels (layers)
• Less bureaucracy and easier decision making
• Fewer management layers may reduce costs as managers cost more
than non managers.
 Data Findings and Interpretation

 Due to tall organizational Structure Walton Group wasting about

2.5crore BDT as labor cost per year because they have more than
500+ management and operational staff.

 For the lake of employee empowerment in the organization they are

falling to take competitive advantages in the local and international
market. As they are using tall organizational structure it is so tuff to
take best possible deal for that day and other companies taking that
opportunity for which Walton Group loosing near about 1 Billon taka
per year.

 Total loss per year due to tall structure:-

2.5crore + 100crore = 102.5crore.

 Recommendation and Conclusion

 At the end our recommendation to Walton Group

 Make a plan to switch to flat organizational Structure.
 Make the structure clear so that all employee can
communicate efficiently within the time frame.
 Use management as support and quick decision maker.
 Use Management Information System (MIS) for agile
information flow.
 Employee empowerment and build trust.
 Find a common ground for all.

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