THE VERTİCAL STRUCTURE & THE HORİZONTAL STRUCTURE İN AN ORGANİZATİON

Identification

Vertical structured, tall company usually have a chain of management that delegates authority to a CEO at the top of the decisions and then the lower-level managers. For example, My father told me to do a job and I got this job done by my brother. If my brother can not do the job we will have to ask my father. Companies that are called horizontal do not have any middle managers. Senior executives take on daily tasks and interact personally with the customer.

Significance

New companies and small businesses will choose a company that is horizontally arranged because they have a limited number of employees according to the Department of Agricultural Economics at Paldue University. It means that these small businesses do not have the resources to lease any middle managers.

Benefits

For a long organization, according to the practical management, companies are better able to assign tasks to employees or departments within the company, well defined responsibilities for employees, and often easier to manage.

Disadvantages

Vertical companies are dependent on a strong lead above. Poor hierarchy of top management is a hierarchical structure, which is disappointed by weak decisions taken by the superior. Also tall companies lack the transparency of a horizontal company because each layer makes information more complex. Horizontal companies become more difficult as the business grows. Because horizontal enterprises do not have teamwork. Employees should know better their responsibilities within the company.

Potential

Frank ostraff says that as the world becomes global, businesses will all be horizontal companies. But no business should have a vertical structure on the horizontal side, instead the best of both worlds is used.