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Horizontal vs Vertical Organization Structures

This document discusses and compares horizontal and vertical organizational structures. A horizontal structure focuses on core processes rather than functions, emphasizes teams, multiskilling, and technology. It has advantages like fewer management levels and better communication, but coordination can be difficult. A vertical structure has a clear chain of command with single supervisors and formal authority and accountability. It allows for quick decisions but can stifle creativity and independence. Both structures have strengths and weaknesses depending on the organization's goals.

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432 views4 pages

Horizontal vs Vertical Organization Structures

This document discusses and compares horizontal and vertical organizational structures. A horizontal structure focuses on core processes rather than functions, emphasizes teams, multiskilling, and technology. It has advantages like fewer management levels and better communication, but coordination can be difficult. A vertical structure has a clear chain of command with single supervisors and formal authority and accountability. It allows for quick decisions but can stifle creativity and independence. Both structures have strengths and weaknesses depending on the organization's goals.

Uploaded by

kukuhricardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Kukuh Faedlur Rahman

14522125

Horizontal & Vertical Structure for Work


Organization
There are two types of organization structure already explained in PPIC
class, horizontal structure and vertical structure. Each structure have its own
properties, strength, and weakness.
I.

HORIZONTAL STRUCTURE

Horizontal Structure Chart (Ostroff, 1999)


Usually the focus of the organization around the process, and not
on the function, putting people who are responsible for the core
process and the decrease in the hierarchy is used to increase the
use of the team. Empower people to make critical decisions on

performance, and is usually exploiting information technology


emphasis

on

organizational

multiskilling
structure

and

people

some
are

competence.

taught

how

to

In

this

work

in

partnership with others, including building a culture of openness,


cooperation, and commitment to performance (Grafin, 2014).
Advantages of a horizontal organizational structure:
i. Managerial levels slightly, so that the costs associated with
ii.

relatively small positions.


Command line and short responsibilities, making it more
effective

communication,

and

obstacles

easier

to

overcome.
iii. Bureaucratic obstacles can be avoided, and the completion
of the work can be faster.
Potential disadvantages are:
i.

Coordination is difficult because so many subordinate

coordinate and relatively more difficult.


ii. Guidance and control less effective
iii. Specialization of tasks less profound

II.

VERTICAL STRUCTURE
Vertical
company
structures,

also

called

centralized

organizations, offer certain advantages. As top-level managers and


owners are the only people setting guidelines, benchmarks and
direction, vertical companies are more likely to be well organized
and fulfill the owner's business goals and desires. Horizontal
companies, also called decentralized organizations, have many
decision-makers and are typically smaller organizations where
employees can often operate independently.
There are several characteristic of vertical dimension structure:
1. Unity of Command

Its means that each subordinate should have only one direct
supervisor. A decision in vertical dimension can be traced
back from the subordinates who carry it out to the manager
who made it.
2. Authority
There is a formal right of a manager to make decisions, give
orders, and expect the orders to be carried out.
3. Responsibility
The managers duty to perform an assigned task.
4. Accountability
The manager (or other employee) with authority

and

responsibility must be able to justify results to a manager at a


higher level in the organizational hierarchy.
Advantages of vertical structure:
i.

Superiors and subordinates are connected with one line of

command.
ii. Sense of solidarity and spontaneity all members is high
iii. The process of making a quick walk decision in order to
reach goal
iv. Discipline and high loyalty
v. Mutual understanding among members is high
Disadvantages of horizontal structure:
i. There is an autocratic tendency leadership style.
ii. Development of employee creativity is hampered.
iii. Employees depend on one person in the organization.
III.

The Relationship of Organization Design to Efficiency vs.


Learning Outcomes

References List
Grafin, R. W. (2014). Fundamentals of Management, 7th Edition. Mason: Cengang
Learning.
Ostroff, F. (1999). The Horizontal Organization. New York: Oxford University Press.

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