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

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

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