The Horizontal Organization

Evolution of Organizational Structures

Traditional Vertical Structure

Teams and Project Managers for Horizontal Coordination

Re-engineering to Horizontal Processes

The Learning Organization

Traditional Vertical Structure

Organizations are realizing that the vertical structure is ineffective in the current environment.

Reasons: Slow response on changes in the external environment Limited view of organizational goals Absence of creativity stimulation and initiatives Poor communication among functional areas LACK OF COORDINATION

Coordination
Coordination means to integrate all the activities in an organisation. It is done for achieving the goals of an organisation. Encourages team spirit Gives organization a proper direction Keeps people motivated Better communication between departments Efficient use of resources Goodwill of the organization will improve Example: Chrysler had good ideas but could not implement them because of bad coordination between departments.

Team and Project Managers for Horizontal Coordination

In this structure importance is paid to teams and project managers who watch over the workings of the project. The organization can put use to task force and teams for problem solving: Task force is a temporary team or committee to solve short term problems involving several departments. Members represent their departments and share information. A team is a group of participants from several departments who meet regularly to solve ongoing problems of common interests.

Organization may also assign a project manager to look over the workings of department full time or for particular projects.

General Manager

Finanace Budget Analysis

Engineering Product Designer

Purchasing Buyer

Marketing Marketing Researcher

Project Manager

Re-engineering to Horizontal Process

The fundamental rethinking and radical redesign of business processes to bring about dramatic improvement in performance Starting from Scratch Step-by-Step Process, the whole organization is restructured

Applicable in case of unforeseen events, like 9/11 and Tsunami

To reengineer, map your current process, combine tasks and eliminate steps in a particular process More companies have completed or are in the process of a re-engineering process.

Advantages
Reduce Cost

Disadvantages
Complacency

Reduced Cycle Time

More Efficiency in Workings Important to adapt to the constant changing environment

Uncertainty- there is a chance that development does not go according to plan

Political Restraints- government support may not always be there