For performance organization to be efficient, it must be based on a vertical organizational structure for the strategy formulation and decision-making to be accomplished by the top executives. This is then passed down the vertical hierarchical chain to be taken care of by lower workers within the organization or company. Due to this type of structure, all the control of the information that is used to complete any and all necessary tasks in order to obtain the goals of the organization sits with the upper management. The vertical or “top-down” management procedures are drastically different from the procedures followed within the horizontal management option. Both rely highly on information sharing within the organization however, the means in which the information is shared is very different between the two.
A horizontal structure allows for the shared information to more both easier and quicker between staff and departments. The way the information is shared as well as the ease and speed with which it is shared is important to how the duties will be delegated and completed as well as the time it will take for these actions to be concluded. (Daft, 2010) Sharing information is a key factor utilized within a learning organization and the employees play a very important role in this type of organization. Without the proper procedures put in place to ensure this process runs smoothly, there is a high possibility of failure within the company. It is very important for all employees involved to hold the same information as well as mindset to work together as a team.
Stakeholders in for profit and nonprofit organizations
A stakeholder is described in the textbook as any individual that holds invested interest in an organization or has influence over the decisions made within an organization. (Daft, 2010) There are many differences in the way nonprofit business are ran versus for profit businesses that could affect a
References: Daft, R. (2010). Organizational Theory and Design (11th ed.). Mason, OH: Centage Learning. Elmuti, D. (2003). The Perceived Impact of Outsourcing on Organizational Performance. American Journal of Business, 18(2), 33–42. doi:10.1108/19355181200300010 Kimmons, R., & Demand, M. (n.d.). What Are the Differences between Vertical & Horizontal in Strategic Management? Small Business - Chron.com. Retrieved August 21, 2013, from http://smallbusiness.chron.com/differences-between-vertical-horizontal-strategic- management-24460.html