As opposed to a hierarchical or pyramidal management structure, a horizontal organizational structure is a way of managing employees in which decision-making is distributed among employees along horizontal lines. This type of management is based on the idea that a collaborative model boosts morale, productivity, and creativity. Organizations that put a lot of emphasis on product development or core business processes frequently employ this technique. A common characteristic of a horizontal organizational structure is the use of cross-functional work teams, which bring together employees with expertise in various fields to work on a single project.
Organizations that value collaboration and promote employee initiative may adopt the philosophy of a more level, egalitarian work team. Decisions made at the top of a vertical structure frequently trickle down to employees at lower levels. Then, these employees are typically required to carry out those decisions without protest.
Workers occasionally might not comprehend the justification for a certain decision. An employee who does not see the need for the change may dislike it. In contrast, those in charge of the business typically want to promote employees’ independent thought, initiative, and teamwork within a horizontal organizational structure. Creativity is valued more than uniformity within the organization.
Although horizontal structures are frequently used within development teams, vertical structures are the more prevalent management systems in business. This is due to its capacity to foster free-flowing thought and creativity. This is among the most prevalent justifications for using a horizontal organizational structure in business. A culture that aims to instill obedience at all times differs from one that fosters creativity.
Cross-functional teams frequently produce a synergy that increases a business’s creative capital. These cooperative teams might collaborate on tasks requiring a lot of individual initiative and creativity. No one on the team is in charge of the other team members. Within the hierarchical structure of the company, they are all vested with the same level of power.
An advertising agency hired to create a marketing strategy for a significant company would serve as an illustration of how a horizontal organizational structure might function. The group would come up with a fundamental idea together to help consumers associate the advertising campaign with that idea. One team member may focus on the wording, while a different member may work on the graphic appeal. A fourth person could plan the schedule for launching the advertising campaign and coordinating its media launch.
Normally, no one team member would have authority over the other team members, but each member would answer to the team manager. Multiple horizontal teams may be active at once within a company. However, in a small business, each team member may collaborate with the business manager.
What are the benefits of horizontal organizational structures?
Benefits of a horizontal organizational structure include the following:
Increased employee satisfaction
Giving employees more control over their roles is one possible advantage of the horizontal organizational structure. This organizational strategy places the needs of employees first, which can increase employee autonomy within a company. Employees may have more freedom if traditional roles and the status that goes with them are removed. The lines between positions can be less rigid if they don’t follow rigid hierarchical titles. Team members may be able to take on new responsibilities that they may not have otherwise considered thanks to this. For instance, a marketing worker could look into website copywriting, design projects, or SEO campaigns.
Optimized resource use
The ability of horizontal organizational structures to effectively use resources is another benefit. This type of organizational structure involves less compartmentalization and separation. Instead of working in separate departments, staff members collaborate as a single team. Team members can communicate and work together with numerous business sectors thanks to this. This can make it simpler for the team to share and distribute resources and assets.
For instance, if a marketing team needed to purchase photo warehouse software in a traditional organizational structure, they might not be aware that the resource already exists within their company’s business development department. Due to the removal of team boundaries and increased interactivity, access to resources such as programs and materials may be easier with horizontal structures.
Enhanced flexibility
Because everyone in a horizontal leadership structure is a member of the same business group, it can promote greater cooperation and flexibility among employees. Teams in a horizontal structure are frequently more aware of the overall goals and objectives of the company. When a team has this level of connectivity, they can adjust or change their strategies as necessary. Because there is less ownership of resources and tasks, system reconfiguration and the facilitation of significant projects may be made easier.
Faster reaction times
The entire business unit frequently is aware of developments as soon as they occur in a horizontal organization. This enables them to collaborate to quickly allocate resources and develop strategies for handling the situation. Horizontal organizations can occasionally achieve quicker reaction times than their vertically structured competitors by combining resources, brainpower, and skills. For instance, if a company entered a new market, staff members could devote resources to studying the target market and presenting a finished marketing plan to the audience as soon as possible. Opportunities should be given higher priority than individual departmental agendas, as this will benefit the entire organization.
Increased communication
In some cases, horizontally structured organizations can assist employees in communicating their needs and concerns to the appropriate parties because they have fewer management layers. This organizational style places a strong emphasis on cooperation and teamwork. Companies work to remove hierarchies that detract from these aims. Individual employees can therefore communicate with managers and owners more directly, which makes it simpler for them to share ideas, request resources, and suggest improvements to current procedures.
Opportunities for synergy
The horizontal organizational structure’s capacity to link workers, managers, and business owners is perhaps one of its greatest advantages. By removing the traditional reporting requirements, team members will be free to think outside the box and make decisions that are in the best interests of the entire organization. Employees are frequently forced to collaborate and question procedures that don’t serve everyone equally by horizontal structures.
Improved creativity
Similar to enhancing synergistic opportunity, creative structuring can stimulate creative thought. Companies that integrate experimental methods into their organizational structure frequently encourage employees to challenge conventional ways of thinking in other contexts of their work. Employees who take risks and try to rethink accepted business practices are typically more accepted by employers who demonstrate an interest in trying new approaches rather than just those that have been tried before.
What is a horizontal organizational structure?
With only a few hierarchical levels, horizontal organizational structures, also known as flat organizational structures, define reporting expectations for employees. For instance, they might consist of the company’s owner at the top, managers or other leaders in the middle, and the remaining workers occupying the same level throughout the rest of the enterprise. Contrary to horizontal organizational charts or matrix organizational charts, which can list multiple layers for middle management, there is frequently only one.
Typically, horizontal organizational structures enable businesses to concentrate on their workforce and give more power to specific team members. Because there isn’t a complex hierarchical reporting structure, it can also encourage more direct lines of communication between managers and employees.
What are the drawbacks of horizontal organizational structures?
Although horizontal structures have many benefits, they aren’t always the best choice for every business. There may be drawbacks to a company lacking hierarchies, depending on its size, objectives, and individual team members.
Here are some potential disadvantages of a horizontal organizational structure:
Reduced productivity
Horizontal structures may be detrimental to productivity in organizations where departments’ responsibilities are interdependent. While some organizations benefit from having fewer managers, others do so so that their departments can specialize and concentrate on a particular task. Processes that could benefit from a more streamlined approach are sometimes made more complex by the necessity of team consensus and collaboration.
Fewer experts or area leaders
Horizontal organizational structures frequently discourage specialization, which may result in fewer experts in your industry. While this may be advantageous for workers who intend to remain with the company for a long time, others may experience frustration due to a lack of opportunity for advancement or their inability to convert their contributions into useful, resume-building skills.
Undefined expectations
Reduced management levels gives employees greater freedom. While some people might enjoy the independence, others might find it difficult to concentrate in the absence of clear reporting structures. Not every employee prioritizes the company’s success when making decisions. Without oversight, the significance of those choices could have a significant impact on the company’s reputation, strategy, and effectiveness.
Organization Theory and Design – Chapter 6 – Part 3 – Organization Structure, Horizontal structure
FAQ
What are the types of horizontal organization structure?
Matrix structure, also referred to as a flatarchy structure or a horizontal structure Team structure. Network structure.
What is horizontal and vertical structure?
For instance, decisions in a vertical, or centralized, business structure are made top-to-bottom. Decisions are made at various levels in a horizontal, or decentralized structure, in contrast. A company’s organizational structure also affects how it manages projects and produces results.
What are three characteristics of a horizontal organization?
A horizontal organization is characterized by teamwork, collaboration, and idea sharing.
What is a horizontal structure called?
A flat organizational structure is one with few levels of hierarchy. These are also called “flat” structures. Such structures often rely on the use of cross-functional teams. For more information, see Understanding Organizational Structures.
