If you want to have a productive and successful company, you must choose an organizational structure to establish a command line, the responsibilities of each member and the information flows. But do you know what differences exist between the ‘vertical’ and the ‘horizontal’ organizational structure ?
Before getting into the subject, we must be clear about what we mean by organizational structure. This is basically the way a company is set up hierarchically . Therefore, it defines the way in which the members of the company relate to each other.
What Differences Are There Between the ‘Vertical’ and the ‘Horizontal’ Organizational Structure?
This organizational structure can be vertical, horizontal, or even mixed. This will depend on how power is distributed , how information is handled and how workers are incentivized. In this article we will explain in detail the differences that exist between vertical and horizontal structures.
- Vertical organizational structure
- Horizontal organizational structure
- What is better, a vertical or horizontal organizational structure?
Vertical organizational structure
In companies that have a vertical organizational structure, the hierarchy follows a pyramid scheme . There is a person or a small group on whom rests the highest authority and responsibility. It is they who are in charge of making the decisions, regardless of what the employees think.
This is typical of companies or institutions that handle a large number of production and / or management units , for which they are helped with apps such as Trello or Asana . For example, government organizations, educational institutions (such as universities), airlines, oil companies, among others.
These companies usually have small and well-structured departments, where each employee is clear about their role . These are supervised by managers, whose primary responsibility is to control operations. Additionally, it is common for employees in these organizations to want to climb the chain of command.
Although having a well-structured organization is an advantage when it comes to handling a very large production with many employees, it also has its negative side . First, it is possible that collaboration between work teams is not organic, or that employees are demotivated because they do not feel heard.
Likewise, it is common that they do not have a good response in markets that are constantly changing. This is because some lax decision-making management is required to take advantage of rapid changes, as the best companies in technological development must have , for example.
Horizontal organizational structure
For their part, companies that are managed under a horizontal organizational structure keep their employees closer to their managers, and they all operate in a more collaborative environment with better communication . In this way, employees have more participation in decision-making.
Under this structure, it is vital that each member of the organization feels empowered and that there are no barriers between the management of the company and its workers . The key to achieving this is to have a good line of communication, for which they can use strategies such as creating a group Drive to work simultaneously .
It also has its downsides . When making decisions, it may be difficult to reach an agreement or consensus among all members of the organization. At times like this, management must seek middle ground and act as a conciliator so that the appropriate decisions can be made.
Even so, for some experts this model represents the future of companies . It is not surprising, since we live in an era of almost unlimited access to information, where the company must make the most of the skills of its employees.
What is better, a vertical or horizontal organizational structure?
The success (or failure) of a company depends largely on its organizational structure. A large company with a large number of employees and subdivisions can benefit from following a vertical organization, where everyone is clear about their role .
On the other hand, smaller companies in which there are not so many resources, it could be more useful to have a horizontal structure, where all members collaborate on all tasks , regulation is guided by task management applications such as Google Tables , and everyone participates in decision-making.
We hope you have understood the basic differences between ‘vertical’ and ‘horizontal’ organizational structure . If you liked it, don’t forget to share this article on your social networks.