Professional Documents
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Concept of Structural Implementation, Types of Structural
Concept of Structural Implementation, Types of Structural
• Vertical Structure
• Horizontal Structure
VERTICAL STRUCTURE
• A Vertical Organisation Structure is one that relies on managers to command and
control their employees work . A business owner is typically at the top of a vertical
chain of command . There are advantages and disadvantages to a vertical structure .
• The qualities of such structure are as follows –
• Process of differentiation
• Involves divisions of labour and specialization
• Hierarchy of authority
• Vertical Communication
• Centralized Decision Making
• Emphasis on efficiency
ADVANTAGE OF VERTICAL STRUCTURE
• In a Vertical Structure there are various Advantages –
• Top-Down Management -
• If an entrepreneur is on top , he gets to transmit his ideas down the chain of
command .He relies on managers in the middle to communicate and implement his
directives .
• Relaxing Rules -
• Although small business do not operate in a context like the military where vertical
control is essential for survival , some business find it beneficial to find ways to keep
a vertical structure and maintain their competitive advantage.
• Surviving in Evolving Markets -
• Vertical structure are efficient because of their clear reporting relationships , but they
often aren’t flexible enough to survive evolving Markets
HORIZONTAL STRUCTURE
• A flat organisation ( also known as horizontal organisation) has an organizational
structure with few or no level of middle management between staff and executives ….
Tall and flat organisation differ based on how many levels of management are
present in the organisation and how much control managers are endowed with .