Differences Between Horizontal & Vertical Organizations Essay

The main advantage associated with this alternative is that it creates better communication between employees (Browning, 1991; Suttle, 2016). Furthermore, the morale of the workforce will be increased, notably amongst the high achievers of the organisation (Hinings 1992; Suttle, 2016). An organisation that adopts a flatter structure is also considerably less bureaucratic, thus resulting in a quicker decision-making process (Suttle, 2016). Aside from quicker decisions, the ConnectUs (2015) website review also highlights that fewer organisational layers result in less wages to pay, therefore salary-related expense are reduced and enable the organisation to save

An advantage of Tesco PLC being part of a hierarchical structure is having a clear authority in each of the levels. This is an advantage because of the various levels having different levels of responsibilities and authorities. As top of the hierarchical structure as shown in the diagram above is the manager director who is the one to have the most control and authority its where the managers will confide in for guidance. Due to being on the level under the manager director as the manager director for example will have their say over what the managers will do. As the hierarchical structure descends there’s less control and authority. Furthermore, is an advantage because Tesco PLC for example, would be able

Horizontal refers to the idea of one firm joining with another at the same stage of the same production process. It also allows for greater market share; achieves economies of scale; and an opportunity to enter a different market segment. An example of this would be Ford’s takeover of Volvo - both being car manufacturers.

Andrew Carnegie, for one, built a giant steel empire using vertical integration, a business tactic that increased profits by eliminating middlemen from the production line. Conversely, John D. Rockefeller’s Standard Oil Company used horizontal

However, it is not always the case that all firms should develop vertical integration strategy to enjoy economic of scale. Firm like boutique or niche items that produces on a small scale are not suitable to implement as it will benefit less from vertically integrated mainly because the input demand for grow is small and due to exclusive nature their prices are inelastic as compare to industry like Oil and Gas Industry, Telecom, Media, automobile developed vertical integration strategy .

Before the late 1800s, a company could be formed with an owner and possibly have family to take over after they died. But if there were no family members, usually the business died out or just ran out of money. During the late 19th century, corporations began to form. Corporations are made up of many people cooperating and they function legally as a person. Vertical integration requires acquiring all means of production. This is a pricey investment, but ultimately has a huge payoff, when you cease to have costs after that. To use horizontal integration, a company must buy all the other companies that produce the same product.

The structure of an organization is very important because it determines the different roles and how all the departments perform. The organizational structure consists of a group of people that works together to achieve the goals that are implemented.

Every type of company or organization that exists operates with a certain organizational structure. However, the organizational structure is tailored to best meet the needs and services of the company. Organizational structures are used as a means of communicating how business will take place within an organization. The structure of an organization is important to the main areas that make an organization function effectively. Organization functions and designs determine the organizational structure. Memphis City Schools has a horizontal organizational structure. Although a horizontal structure exists as the overall structure at the executive level, a vertical structure is also in place at the management/staff level.

There are many benefits and disadvantages of the traditional structure within a corporation. The greatest benefits you get with the traditional structure of a corporation are specialization and efficiency. Within the structure there is a high level of specialization and each field of expertise or specialty is like a company within a company. Each one is pretty much charged to carry out a specific role or duty. Often times you start out at an entry-level position within the

According to Reframing Organizations the benefits of a formal structure helps a company to not waste time and money especially on training products in an effort to solve problems that deal with social architecture instead of people. Structure, basically a blueprint for internal management/ employees and external constituencies like clients and competitors to follow. It has been said that structural form enhances and constrains what an organization can accomplish.

Organizational structure is the framework around which the organization is organized, the underpinnings, which keep the coalition functioning. It 's the operating manual that tells members how the organization is put together and how it works. More specifically, structure describes how members are accepted, how leadership is chosen, and how decisions are made (Nagy, 2014). With lives in their hands, hospitals have to function very precisely, executing high-quality services every hour of every day. Organizations that have this sort of requirement usually take on a vertical organizational structure (Feigenbaum, 2015). This type of structure has many layers of management, with most of the organization 's staff working in very specific, narrow, low-authority roles. The numerous layers of management are designed to make sure that no one person can throw the system off too much. This structure also ensures that tasks are being done exactly and correctly (Feigenbaum, 2015).

All in all, the cross-functional structure allows employees to create the set of functions they need in order to scan and monitor the competitive environment and obtain information about the way it is changing. With the right set of functions in place, Morgan Stanley’s managers are then in a good position to develop a strategy that allows the organization to respond to its changing situation quickly. Employees in the first line work level would communicate more with the customers. Under the cross-functional structure, the group can decide every aspect of a business. For example, the group formed to deal with real estate investment can make decision to set the price by themselves instead of the Morgan Stanley Marketing department. It will let the service firm keep itself closer to the market and customers.

Organizational structure is a formal relationship between management and the employees. It is a way to motivate the employees and get them to working. It is also away to get employees to follow the company goals, and work together as a team. To make an organization work they need to have an organized structure to be able to run the company. The mission

In a centralized organizational structure one individual is responsible for making all the decisions and maintains control of the company by giving direction. While Decentralized organizational structures often rely on several persons with the authority to make final decision for the company’s well being. Some benefits associated with a centralized organization are as follows: Reduction in cost in the work environment, having a focused vision on one common goal and Reduction in conflict. A Few drawbacks of a centralized organization include, No secrecy because all ideas and decisions are conveyed to all, No special attention and Delay in work. Advantages associated with Decentralization are; Huge relief is provided off the top managers, Greater use is made of employees skills and Decision making is left up to educational and well informed people.

Organizational structure is definitely a must have in an organization. Organizational structure is designed to form and develop clear lines of order to control an organization getting the best use of the organizations resources. According to Mahmud Hasan, some advantages of organization structure are that is easier to control the resources and they can be rationed and allocated to different units to use them at their more productive use at a micro level. Another advantage would be that clearly defined reporting lines make it easy for employees to know whom to report to while reducing redundancies by eliminating extra or unproductive processes. Other advantages are to streamline processes by giving them more focus and adoptive nature, reduce cost because the controlling of various cost control centers are controlled at micro level. Lastly, another advantage is it will help reduce cost because the controlling of various cost control centers are collected at micro level (Hasan, 2010).