Vertical - Tall Organisations:
Vertical or tall organisation refers to increase in the length of the organisational chain of command. A hierarchical chain of command represents the company's authority-accountability relationship among superiors and subordinates. Authority & responsibility flows from the top to the bottom by all the levels of hierarchy. Accountability flows from the lowest stagges to the highest level.
Table: Advantages and Disadvantages of Vertical/Tall Organisation
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Advantages
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1. Effective analysis of factors and efficient decision making are possible as a number of officials at different levels supervise and check the activities.
2. Communication of the company's mission goals and objectives to all employees is better.
3. Coordination of functional areas is enhanced and ensures that each area is working closely with other functions.
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Disadvantages
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1. Too many hierarchical levels may waste time in communication, that might, in turn, lead to delays within decision making.
2. There is too much centralisation.
3. Tight operational control delays the decision making process.
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Figure: Hierarchical Levels in Vertical/Tall Organisations