Differences Between Horizontal & Vertical Organizations Essay

685 Words Feb 6th, 2015 3 Pages
Differences Between Horizontal & Vertical Organizations

Organizational structure within an organization clarifies employee roles, facilitates communication and establishes a chain of responsibility to help determine strengths and weaknesses. Before you determine whether your organizational structure should be vertical or horizontal, you need to understand the differences between the two frameworks. Implementing the correct organizational structure is critical to maximizing staff productivity
Definition
A vertical organization is one that has a pyramid-look when charted out on paper. usually with a CEO at the top or the company president , making decisions and then delegating authority to lower-level managers, and then each division is
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Because employees in a horizontal organization are empowered to make their own decisions, collaboration tends to happen more organically. Employees have open contact with each other and are more available to create collaborative solutions.
Communication
The rigid structure of a vertical organization tends to slow communication between departments and from management to employees. Communication in a horizontal organization tends to be more organic and easily flows from one work group to the next.
Benefits
Companies with a tall organizational structure are better at designating tasks to employees or departments within the company, have well-defined responsibilities for employees, and are generally easier to manage, according to Practical Management.
Horizontally structured businesses tend to have the best employee morale because there is less red tape when dealing with problems. Also, it costs less to run a horizontal company because managers cost more than rank-and-file employees.
Disadvantages
Vertical companies are dependent on a strong leader at the top. Weak upper management means that each successive hierarchical structure will get frustrated by poor decision making by the superior. In addition, tall companies lack the transparency of a horizontal company because each layer muddles information more and more.
Horizontal companies are much harder to implement than vertical companies, especially as the business grows, because the business must foster a culture of
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