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Reduction of Vertical Stratification of Organizational Structure and its Implications for the Long-Term Success and Growth of a Firm

Reduction of Vertical Stratification of Organizational Structure and its Implications for the Long-Term Success and Growth of a Firm

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Published by ninemileco
The ultimate success of a firm in terms of competitive advantage and market share is just as much a function of their organizational structure as it is their ability to utilize and rapidly disseminate technological advances. The historical organizational structures between American and Japanese firms are contrasted in terms of (1) the division of labour in manufacturing, (2) the structure of their Research and Development (R&D) groups, and (3) the nature of new entrepreneurial firms to illustrate that reduction of vertical stratification of organizational structure leads to an easier adoption of new production methods with less bottom-up resistance, to the increase of a more horizontal division of labour in terms of integrative research, as well as fostering innovation in new entrepreneurial ventures. Leveraging the benefits from the reduction of vertical stratification is a necessary requirement for the long-term success and continued growth of a firm.
The ultimate success of a firm in terms of competitive advantage and market share is just as much a function of their organizational structure as it is their ability to utilize and rapidly disseminate technological advances. The historical organizational structures between American and Japanese firms are contrasted in terms of (1) the division of labour in manufacturing, (2) the structure of their Research and Development (R&D) groups, and (3) the nature of new entrepreneurial firms to illustrate that reduction of vertical stratification of organizational structure leads to an easier adoption of new production methods with less bottom-up resistance, to the increase of a more horizontal division of labour in terms of integrative research, as well as fostering innovation in new entrepreneurial ventures. Leveraging the benefits from the reduction of vertical stratification is a necessary requirement for the long-term success and continued growth of a firm.

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Categories:Types, Research
Published by: ninemileco on Apr 06, 2013
Copyright:Traditional Copyright: All rights reserved

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