Valve Case Study

1634 Words Oct 20th, 2012 7 Pages
1101IBA – Management Concepts

Literature Review and Report

Valve Case Study

By

Muhammad Rabani b. Shamsul Khairil s2834180 Semester 2, 2012

1 583 words

Table of Content

1. Introduction 3 2. Problem Identification 3 3. Analysis 4 3.1 Vertical Organisation Structure 4 3.2 Horizontal Organisation Structure 5 4. Recommendations 6 5. Conclusion
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This enables organisation a better at designation of tasks to employees or departments within the company, have well-defined responsibilities for employees, and are generally easier to manage. This enables problems to be solved quickly and projects or tasks are done according to plan. Because of this distribution of power and centralisation in decision making, vertical organisation structure provides the organisation the ability to grow efficiently as well increase productivity (Mihm et al. 2010, p 831). As company grows large, management are required to solve problems that are complex because of multiple relevant technologies, globalizing markets, multiple interacting business processes, and collaboration with external partners, vertical organisation structure helps in solving these challenges.

A major problem for vertical organisation structure is that because of the pyramid shapes of the structure, it lacks the transparency of information because each layer muddles information more and more and tends to create boundaries between departments or branches in an organization. For example, person down one branch must go up the chain of command on his branch and then down the chain of command on the other branch in order to interact with someone down the chain of command on a different branch (Damraks 2009, p7-8). This may lead to poor inter group interaction which can result in

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