A tall organizational structure has multiple layers of management between the top rung and the lowest rung.

The long chain of command runs from the top down. And it has an impact on most aspects of an employees existence in the organization. The larger the organization is, the taller the hierarchy grows and the more complex the movement of information between the layers becomes. Impact on information and idea transmittal: In tall structures, the number of employees that report to a single manager tends to be smaller. In this structure, employees can be supervised and their activities monitored closely. This is referred to as a small span of control. But due to of a smaller span of control employees may not collaborate easily with other departments or workers many levels above or below them. Lack of collaboration and teamwork sometimes means that some new ideas and innovations may never reach production Sense of Job Security: Tall structures tend to give employees a sense of job security. Most often, employees consider their position secure if there is a place above them to move to. Growth Plan in the organization is clear: Employees can see that there are more levels to be promoted. Hence, they see a clear progression and promotion ladder. Competition amongst peers: With the smaller span of control, employees seeking upward mobility and promotion know who their competition is. Hence, the competition tends to be aggressive and people perform better. Communication: As the number of managerial levels increases, it takes longer for information to move up and down. As communications pass from manager to subordinate the message may become filtered or distorted. Getting information from the frontline up to top management takes even longer as it passes through the channels set in place by the hierarchical structure. Sometimes, because each level of management doesnt understand what takes place at the bottom, the message is interpreted according to each managers skills, abilities, understanding or interest and loses its original meaning by the time it gets to the top.

Decision Making: Because of the slower communication processes, decision-making is sluggish as well. Each level must accept the information, absorb it and then act on it to move it to the next level. If multiple layers of authority need to give approvals, each decision takes longer to be made and even longer for implementation. But, the benefit is that the decision is truly accepted by all and everyone is well aware of it. Decision making which needs to be taken at the top level is much easier compared to that in a relatively flat organization because it is not necessary to take everyones opinion. This makes the process faster. There is less confusion and argument. Military Style Tall structures function more like the military than do flatter structures. In business, however, this does not always result in a better product or improved bottom line. Bright, creative employees do not always accept the complicated processes necessary to get things done and may move to companies with flatter organizational structures. Rigid Rules
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In a tall organizational structure, employees often lie at the bottom of a long chain of supervisors, managers and executives. Because each level of the company hierarchy comes with its own rules, regulations and procedures, employees near the bottom of the organization might face a large number of rules. To add to the restrictive nature of these organizations, according to an analysis of organizational structures performed by the All Business website, employees might observe that managers strictly enforce the numerous rules. Communication Breakdowns

In tall organizations, according to the online book "Principles of Management," managers tend to discourage employees from communicating directly with workers in other, parallel workgroups. Instead, communication from one workgroup typically flows upward through a chain of managers until executives hand off the communication to upper-level managers in the other workgroup. This communication distance can pose a host of problems that range from delays in receiving important information to a complete misunderstanding of the subject communication. Just as tall organizations inhibit communication between employees, managers also can experience similar frustrations. Managers limited to communicating only with direct reports and immediate supervisors can, according

to "Principles of Management," experience difficulty obtaining critical information from other workgroups.

Tall Organizational Structure Large, complex organizations often require a taller hierarchy. In its simplest form, a tall structure results in one long chain of command similar to the military. As an organization grows, the number of management levels increases and the structure grows taller. In a tall structure, managers form many ranks and each has a small area of control. Although tall structures have more management levels than flat structures, there is no definitive number that draws a line between the two. Flat Organizational Structure Flat structures have fewer management levels, with each level controlling a broad area or group. Flat organizations focus on empowering employees rather than adhering to the chain of command. By encouraging autonomy and self-direction, flat structures attempt to tap into employees creative talents and to solve problems by collaboration. Tall Structure Pros And Cons The pros of tall structures lie in clarity and managerial control. The narrow span of control allows for close supervision of employees. Tall structures provide a clear, distinct layers with obvious lines of responsibility and control and a clear promotion structure. Challenges begin when a structure gets too tall. Communication begins to take too long to travel through all the levels. These communication problems hamper decision-making and hinder progress. Unlike in flatter structures, managers experience less workload and the confusion created by large number of employees reporting to each boss sometimes results in confusion over roles. Due to less people reporting to a manager, he is always aware of who should get credit for what. Responsibilities are clear. In flat structures employees often worry that others manipulate the system behind their backs by reporting to the boss; in a flat organization, that means more employees distrusting higher levels of authority. This problem is avoided in taller hierarchies. Government bureaucracies, including the military, have tall structures with multiple layers of management. A global company may have a tall structure with several management layers between the employees and the chief executive office. Considerations

Tall organizations tend to centralize decisions, while flat organizations favor decentralized decision-making. However, nothing prevents a company from using both, depending on the circumstances. A company could use decentralization to spur innovation and centralization to resolve conflicts. Centralized decisionmaking is necessary when a company has a few people capable of making good decisions. Definition Centralized organizational structures rely on one individual to make decisions and provide direction for the company. Small businesses often use this structure since the owner is responsible for the companys business operations. Decentralized organizational structures often have several individuals responsible for making business decisions and running the business. Decentralized organizations rely on a team environment at different levels in the business. Individuals at each level in the business may have some autonomy to make business decisions. Advantages Tall hierarchical organizations can be extremely efficient regarding business decisions. Business owners typically develop the companys mission and vision, and set objectives for managers and employees to follow when achieving these goals. Flat organizations can struggle with multiple individuals having different opinions on a particular business decision. As such, these businesses can face difficulties trying to get everyone on the same page when making decisions.

Results: The observations obtained from 4 IOCL employees were as follows: 1. It is difficult for ideas to reach to the top. It is also possible that someone else may take credit for their subordinates findings. 2. Co-ordination with other departments becomes difficult. 3. Some ideas never reach to the top. 4. Hierarchy ensures their career progression 5. Sometimes growth is focused mostly on the number of years and education, without any consideration to performance. 6. People on the top sometimes believe that subordinates should do everything they want them to. 7. Formal processes are very sow and complicated. 8. In some extreme cases, employees tend to vent out their frustration on their family and friends.

9. Generally, when elder people form the lower rung of employees there is lot of morale dilemma on how to address and treat them. 10. Processes take so long for approval that one can sneak in lot of fun time.