What is horizontal organization?
A horizontal organization consists of a few hierarchical levels. This organizational structure is also called a ‘flat’ structure. Such structures rely mostly on the use of cross-functional teams. Managers have a wide span of control with more subordinates. There is a short chain of command and this results in quicker, more effective communication. This structure is often adopted by small businesses.
What are the advantages of horizontal organization?
- Fewer layers lead to better communication in the company.
- More autonomy and responsibility for employees
- Employees may feel more motivated, therefore being more productive.
What are the disadvantages of horizontal organization?
- Lack of progression opportunities
- Higher workloads for managers
- Managers have more subordinates