Question & Answer: Do you feel that employees would work better under a traditional structure or a horizontal structure?…

Expert Answer

Traditional or Vertical Structure:

Traditional structure organizes the business vertically department-wise of function-wise. The Top chain of management starts with CEO, then delegating to middle-level managers which in turn delegates to low-level managers or supervisors. This structure is most suitable for the businesses those are having stable business and product life, such as government organizations. The responsibilities of the employees are well-defined and are managed easily. The core decision maker is top management and the conflicts are resolved through the power and hierarchical influences. Thus, the decision making process is slow and due to such structures respond the changes in marketing at slow rate.

In vertical structure, employees are limited to their functions and departments and conduct routine works. Thus, they are less utilized.

Flat or Horizontal Structure:

As the environment is becoming more dynamic, the organizations should respond quickly to the changes. For this nowadays organizations are applying horizontal or flat structure for their businesses. In horizontal structure organizes the business around core processes instead of traditional functions or departments. The hierarchy is flattened by reducing the supervision level and hold employees responsible by including them into decision making process. The self-managed team conducts all the core processes and focuses on overall customer satisfaction those are in congruence with team goals. Thus, decision making process is fast and efficient. The teams are well trained, skilled and motivated to achieve the team goals.

In horizontal structure the employees works in team and highly motivated to find new solutions to the problem. Thus, they are highly effective and appropriately utilized.