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 made up of a series of middle management and supervisors who are responsible for various departments. This is often referred to as a "tall" organization. A horizontal structure is one without middle management where employees are largely allowed to make their own day-to-day operational decisions. Large groups of employees report often to just one manager. It is also called a "flat" organization.
Decision-Making
The vertical and horizontal structures have very different ways of making decisions. In a vertical organization, decisions come from management down through the hierarchy to employees. Employees are given a set of guidelines to follow and must work with the management hierarchy to make any changes to job duties. Horizontal organizations empower employees to make daily operational decisions and encourage employees to consult with management on larger issues. The staff is driven by production goals set by the company, and there are company policies that must be adhered to for safety and legal reasons.
Collaboration
A vertical organization tends to be structured in terms of employee and management collaboration. Since decisions must travel up and down the organizational chart, collaboration between employees and managers on