What Does Horizontal Organization Mean?

The structure of an organization refers to the hierarchy within a company. It defines the concept of subordinates who collaborate to accomplish stated goals. The organization’s goals and culture typically determine its structure, which influences the manner in which the organization performs. The allocation of responsibilities throughout the hierarchy depends upon the structure of the organization. Companies that employ a horizontal structure, also termed a flat structure, operate with few levels between managers and staff. Frequently used in small organizations, the horizontal structure represents a belief that involving employees directly in the decision-making processes and minimizing management supervision of employees increases productivity.

Value-Added Teams

Unlike the vertical organization structure, which consists of multiple layers, horizontal organizations break down into significantly less core groups. Typically, a senior level management group and a group of involved employees exist in horizontal organizations. The management layer holds responsibility for policies and corporate strategy; staff level employees work in various process-driven teams. Teams work independently, allowing corporate leaders to concentrate on the larger direction of the company. Horizontal organizations focus on the content and flow of the work; employees focus on work that directly impacts customers and, therefore, the company’s bottom line.

Communication

Interaction between employees in horizontal organizations leads to productive working relationships and overall good communication. Employees filter new information at the team level. Employees on different teams often possess a cross-functional understanding of other teams’ responsibilities This understanding reduces costly conflicts that sometimes arise between different departments. Team members tend to resolve local problems within the group and allow the organization to function and adapt well to an increasingly shifting business environment.

Corporate Culture

Organizations that operate using a horizontal structure boast a corporate culture, the shared set of goals for the organization, openness, coordination and positive employee relations. The culture values employees, both management and staff levels, and promotes ongoing improvement of employee performance. The culture of the organization focuses on empowering employees with responsibility and concern for their overall well-being.

External Focus

The horizontal structure creates conditions conducive to focusing on the external environment, the customers, rather than on internal issues. Companies define a value proposition that addresses customers’ needs and stays consistent with the organization’s financial goals. Employees, organized in groups of skills best suited to achieve the company’s goals, focus on delivering value to customers. Able to make decisions within the teams, employees, often incented by performance-drive goals, align their activities to satisfying the customers’ wants and needs.

Innovation

Companies that operate using a horizontal structure produce an environment conducive for continuous innovation. Employees who are empowered in their job functions and decision-making process combine for a collective intelligence. This structure leans toward group thought and, as such, maximizes the possibility for new ideas that reaffirm the vision, propel the company’s growth and increases profits