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Flat Organizational Structure Is Better Than A Tall Structure For Organizations Like Capco

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Evaluate whether a flat organizational structure is better than a tall structure for organizations like Capco The Capital Markets Company N.V., referred to as Capco, is a global business and technology consultancy based in Antwerp, Belgium with offices in financial centers across North America, Europe, Asia, and Africa. Capco is a subsidiary of FIS company based in Jacksonville, Florida. Capco works only in the financial services industry, unlike the Big Four professional services firms. As of 1 September 2013, Capco had approximately 2,000 employees internationally, and 20 offices. Capco specializes in six financial services sectors: banking; capital markets; finance, risk and compliance; insurance; technology; and wealth and investment management. The company claims its current and past clients include …show more content…

Flat Organizational Structure The way that a company’s structure develops often falls into a tall (vertical) structure or a flat (horizontal) structures. Tall structures are more of what we think of when we visualize an organizational chart with the CEO at the top and multiple levels of management. Flat organizational structures differ in that there are fewer levels of management and employees often have more autonomy. 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

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This is an example of flat organisational structure as there is no middle management. The organisational structure of Macmillan Is split up into 6 different sections. The first and most important sector is the chief executive whose job it is to make the big decisions and to manage the major operations and resources of the company and finally acting as the main communicating point between board of directors and corporate operations, and then there is a board of trustees that the chief executive rely on to help them with the important decisions.

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Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia.

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The different type of structures (1) Functional – each portion of the organisation is grouped according to its purpose. (2) Matrix - ‘’ creates project teams that cut across traditional functional departments, instead of highlighting the role or status of individuals, it gathers together a team of specialists with the objective of completing a task or a project successfully ‘’ . (3) Divisional – It is the grouping of workers on the basis of products being produced, followed by the functional structure. There are two types of divisional structure , (a) Product structure (b) Process structure (4) Geographical – It is the grouping of workers on the basis of regions, followed by the functional structure and , (5) Hierarchical structure which has been adopted by Ritz Carlton. It shows the different levels of hierarchy, span of control and chain of command.

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1. Introduction to Organisational Structures The Organizational Structure within a company determines the way in which an organization’s operational activities are performed. Some of the main operations defined within an organizational structure include the allocation, supervision, and coordination of how a project is to be completed. The organizational structure will determine how tasks are performed during a project and who the tasks are to be performed by. The organizational structure also states who will manage or oversee the project and the processes or protocols that will be implemented during the time frame of that particular project.

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This is a system that shows how much variety positions from top to bottom of the organization. In bureaucratic organizations, the office also follows the principle of the hierarchy of each department are regulated by higher office. The

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